Enhancing the Interface between Standard‐setters and Academic Research. Issue 3 (20th June 2021)

• Record Type: Journal Article
• Authors: Pinnuck, Matt; Stevenson, Kevin
• Is Part Of: Australian accounting review. Volume 31:Issue 3(2021)
• Page Start: 169
• Page End: 185
• Publication Date: 2021-06-20
• Subjects: Accounting -- Australia -- Periodicals; Accounting -- Standards -- Australia -- Periodicals; Accounting -- Periodicals; Managerial accounting -- Periodicals; Corporations -- Finance -- Periodicals; 657.0994
• DOI: 10.1111/auar.12343
• Languages: English
• ISSNs: 1035-6908

Abstract

Abstract: This article points to gaps between academic research and the needs of accounting standard‐setters. In part it attributes those gaps to the academic literature seeming to be inaccessible and oriented to ideas apparently unrelated to the policy‐making issues facing standard‐setters. As a means of partially reducing that perceived inaccessibility, the paper provides a way for standard‐setters to identify and classify the various forms of academic accounting research so that they can evaluate their usefulness. Two prominent strands of research (agency theory/costly contracting and value relevance) are, as illustrations, analysed so that standard‐setters can see how they might approach those strands. The paper suggests a users' needs/demand driven approach to improving understanding, rather than a supply (by academics) driven approach. Finally, the paper explains how the performance metrics faced by academics can be inconsistent with the readiness expressed by standard‐setters to have academics assist them. The paper provides a suggestion as to how there could be some alignment of academic performance metrics and standard‐setters' needs.