Abstract
This paper is devoted to investigate the recent development of Australian accounting standards-setting in the light of theories of economics and sociology particularly in respect of the events and controversies around convergence of international accounting standards. The purpose of this paper is to examine the strength and weakness of different theories in the analysis of standard-setting process and more importantly, seek to compare standard setting process and major players involved in national and international arenas. Accordingly through critical use of different theories, this essay suggests that although certain propositions or assumptions of different theories may remain applicable under different scenarios, however with regard to the theory as a whole, it may be argued that each individual theory examined in this essay are not sufficiently sophisticated or suitable in analysis of Australian accounting standard-setting in national and international arenas
Introduction:
Accounting standard setting has been controversial in terms of the institutional standard-setting arrangements in place, regulations introduced by the standard-setting bodies, intervention from the federal government on standard setting process and increasingly significant corporate lobbying on the setting process from different corporate sectors. The standard-setting process itself on both national and international arenas has become a highly politicalized issue that different parties in this power play game would maximize their own interests. Different theories would be applied to examine the standard setting process in different stages of the history with regard to different players.
Theories appied in national arena:
It is reasonable to say that the assumption o ...