Portal de Periódicos da CAPES

The IASC's search for legitimacy: An analysis of the IASC's standing interpretations committee

2002; Elsevier BV; Volume: 15; Linguagem: Inglês

10.1016/s0897-3660(02)15020-3

0897-3660

Robert K. Larson,

Accounting Theory and Financial Reporting

The International Accounting Standards Committee (IASC), and its successor, the International Accounting Standards Board (IASB), greatly desires acceptance and legitimacy as an institution. Organizational legitimacy is the acceptance of an organization by its environment and it is often viewed as vital for an organization's survival and success. In complex structures, an institution's legitimacy should be judged by examining both the organization as a whole and its subunits. Since the U.S. Securities and Exchange Commission (SEC) has stated that acceptance of IASC standards (IASs) depends, in part, on whether the IASB develops a method for speedy, official interpretations of IASs, this study investigates the Standing Interpretations Committee (SIC) responsible for interpretation of IASs and also suggests a framework for evaluating whether the SIC has achieved effectiveness and legitimacy. The paper focuses on the SIC's due process, structure, and membership, and on constituent participation in the SIC's first 23 Draft Interpretations. Large public accounting firms and professional accountancy bodies are actively involved with the SIC. However, the minimal participation by corporations and other stakeholders raises concerns that the SIC has not effectively reached its potential broader constituencies. This raises questions whether the SIC has fully achieved its goals.