Research Repository

See what's under the surface

The temporal nature of legitimation: the case of IFRS8.

Crawford, Louise; Helliar, Christine; Power, David

Authors

Louise Crawford

Christine Helliar

David Power

Abstract

Legitimation can operate on an episodic or continual basis [Suchman, M.C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610]. We examine the temporal legitimation of the International Accounting Standards Board (IASB)'s actions during the adoption and review of International Financial Reporting Standard (IFRS) 8 Operating Segments. We conceptualise the controversy surrounding IFRS8 as an episode when the IASB sought segmental reporting convergence with the US standard, Statement of Financial Accounting Standard 131. Interpreting evidence from 15 (20) semi-structured interviews undertaken in 2009 (2011), before (after) entities reported under IFRS8, reveals its adoption precipitated an episodic legitimacy threat from selected audiences to the actions of the IASB. We discuss the IASB's attempt to influence legitimation for this episode through commitment to a post-implementation review [IFRS Foundation. (2011). Post implementation reviews: Plan for developing the framework for conducting post-implementation reviews. IASB Board meeting February 2011. Retrieved July 27, 2011, from http://www.ifrs.org/NR/rdonlyres/ 3E1502E4-F1E8-4907-838B-FFB20C7268ED/0/PIR02111st2ndb04obs.pdf] of IFRS8. Interpreting legitimacy concerns across diverse audiences about specific actions of the IASB (the introduction of IFRS8) enables us to draw conclusions about the resilience of the IASB as a standard setting organisation, in itself.

Journal Article Type Article
Publication Date Mar 17, 2016
Journal Accounting in Europe
Print ISSN 1744-9480
Electronic ISSN 1744-9499
Publisher Taylor & Francis
Peer Reviewed Peer Reviewed
Volume 13
Issue 1
Pages 43-64
Institution Citation CRAWFORD, L., HELLIAR, C. and POWER, D. 2016. The temporal nature of legitimation: the case of IFRS8. Accounting in Europe [online], 13(1), pages 43-64. Available from: https://doi.org/10.1080/17449480.2016.1160136
DOI https://doi.org/10.1080/17449480.2016.1160136
Keywords Legitimation; IFRS8; Segmental reporting; Episodic; Temporal

Files




Downloadable Citations