Monopoly versus Competition in Setting Accounting Standards.

Financial accounting standards are set by organizations granted a significant degree of monopoly power by various governments.While there has been considerable debate on the merits of national (e.g., US Financial Accounting Standards Board (FASB)) versus international (International Accounting Stand...

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Publicado en:Abacus Vol. 50; no. 4; pp. 369 - 386
Autores principales: Jamal, Karim, Sunder, Shyam
Formato: Artículo
Publicado: Wiley-Blackwell Dec2014
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Monopoly versus Competition in Setting Accounting Standards.
      aug:
        au:
          Jamal, Karim
          Sunder, Shyam
        affil:
          University of Alberta
          Yale University
      su:
        Accounting standards
        Accounting methods
        Accounting
        Monopolies
        Telephone systems
      sug:
        subj:
          Accounting standards
          Accounting methods
          Accounting
          Monopolies
          Telephone systems
      keyword:
        Coordination
        Google Talk
        IETF
        ITU ‐ T
        ITU-T
        Network externalities
        P2P networks
        Quality
        Quality;Technology;Telephony
        Skype
        Technology
        Telephony
      ab: Financial accounting standards are set by organizations granted a significant degree of monopoly power by various governments.While there has been considerable debate on the merits of national (e.g., US Financial Accounting Standards Board (FASB)) versus international (International Accounting Standards Board (IASB)) monopolies, little attention has been paid to the merits of using competing standard-setting organizations (SSOs) for setting accounting standards.We compare the standard-setting processes of the FASB/IASB to the processes of four technology-oriented SSOs to assess the role of competition. We also provide a case study of monopoly and competitive standards in telephony. Both telephony and accounting yield some gains from coordination, and similar arguments are used (under the labels of comparability and consistency of accounting) in debates about granting a monopoly to their respective SSOs. Our results show that a group of volunteers competing with the government-sanctioned monopoly of International Telecommunications Union transformed the telephone industry. Thanks to this standards competition, we enjoy free video internet calling and massive cost savings. Implications for accounting standard setting are discussed.
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