Premium
GASB's Survival Potential: An Agency Theory Perspective
Author(s) -
Gordon Lawrence A.,
Hamer Michelle
Publication year - 1983
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.00592
Subject(s) - demise , accounting , agency (philosophy) , commission , government (linguistics) , adversary , position (finance) , perspective (graphical) , business , law and economics , economics , political science , finance , law , sociology , computer science , computer security , social science , artificial intelligence , linguistics , philosophy
The primary objective of this article is to develop a framework for examining the survival or demise of an accounting standards setting body, with specific emphasis on analyzing the survival potential of the proposed GASB (Government Accounting Standards Board). In meeting this objective, we will first contrast the survival of the Securities and Exchange Commission (SEC) with the demise of the Cost Accounting Standards Board (CASE), based on a framework derived from recent developments in agency theory. The position taken in this article is neither that of an advocate nor an adversary of the various accounting regulatory bodies discussed. Instead, the authors' intent is to shed light on the complex issues surrounding the potential for survival of such bodies. An improved understanding of these issues should, in turn, permit a more enlightened analysis of the strengths and weaknesses of such bodies.