Title: International accounting standards: a legal illusion for the benefit of shareholders

Authors: Frédéric Compin

Addresses: Centre Pierre Naville, Université d'Evry, 91000, France

Abstract: This paper looks at the legal implications of accounting standards drawn up by private bodies for shareholder benefit and questions their legitimacy and effectiveness. It also explains why the combined actions of the IASB and FASB have led to an inversion of the norm hierarchy. This paper explores the need for alternative and sustainable international accounting standards and explores the hypothesis of standards which would incorporate the GRI framework and make human and environmental resources an integral part of the wealth creation assessment process.

Keywords: Kelsen; norm effectiveness; norm validity; norms; norm hierarchy; international accounting standards; shareholders; lobbies; International Financial Reporting Standards; IFRS; US GAAP; GRI; alternative standards; sustainable development; sustainability; shareholder benefit; wealth creation assessment.

DOI: 10.1504/IJCA.2013.059018

International Journal of Critical Accounting, 2013 Vol.5 No.6, pp.594 - 608

Available online: 02 Feb 2014

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