Politicisation of the accounting standard-setting process and the influence of key-players: An investigation into the withdrawal of the mandatory status of the Statement of Accounting Concepts No. 4 (SAC 4) in Australia

Abstract

This article aims to develop our understanding of the political activity of groups and individual key-players leading to the withdrawal of the Statement of Accounting Concepts No. 4 (SAC 4). The study also examines the arguments advanced by opponents of this rule, using archival data and semi-structured interviews. The key findings of the study highlight the importance of highly motivated, influential and passionate stakeholders in lobbying against proposed accounting rules. In addition, this event raises interesting questions relating to our understanding of Capture theory. This article shows how key-players within the standard-setting environment interacted with each other and lobbied to bring about the withdrawal of the mandatory status of SAC 4. This study adds to the academic literature by allowing individual key-players to explain their motivations and activities in their own words.