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STANDARD SETTING FOR OIL AND GAS ACCOUNTING: AN ANALYSIS USING ALLISON'S APPROACH
Author(s) -
Betkaoui Ahmed
Publication year - 1983
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1983.tb00225.x
Subject(s) - accounting , statement (logic) , financial statement , asset (computer security) , value (mathematics) , economics , financial accounting , politics , actuarial science , computer science , political science , accounting information system , law , mathematics , statistics , audit , computer security
The three models advanced by G. T. Allison in Essence of Decision are applied to FASB's Statement of Financial Accounting Standards No. 19 to explain the adoption of the “successful‐efforts” method. In the first model, the decision is explained as the action that reflects a consistent, value maximizing choice within specific constraints. In the second, it is interpreted as the “output” of the FASB regulated by standard procedures, namely in recognizing an asset. In the third, it is viewed as a political resultant in a struggle involving interest groups. The analysis revealed the usefulness and some weaknesses of the Allison Approach to an understanding of the standard setting decision by the FASB. The approach is applicable world‐wide to other standard setting scenarios.