Influence on accounting standard-setting in Sweden by holding positions – An empirical analysis

Abstract

In this study a ranking is made of persons based on the number of years that the persons have held positions in standard-setting bodies in Sweden during a period of ten years. The positional approach assumes that people holding positions in units with important functions are able to exercise influence. Applied to accounting standardsetting units of importance are the actual standard-setting units. A decision to issue a standard may be made by a board. However, this decision could be formal in character. Another unit may be the actual standard-setter if that unit produces the standards i.e. if it does everything but making the final formal decision. The number of years that a person has held a position becomes interesting as the process of producing accounting standards frequently goes on during a long period of time. This study shows that there are many persons who have held a position. However, there is a small group of persons who have held a position during many years and also in more than one body. Thus, they have had the opportunity to exercise larger influence than others. As these persons belong to various interest groups it becomes interesting to discuss potential effects for these groups. Furthermore, a comparison is made between the standard-setting bodies focusing the criteria used when selecting the members of the actual standard-setting units. This study shows the importance of considering political aspects when studying accounting standard-setting in Sweden.