An examination of comment letters to the IASC: Special purpose entities

Robert K. Larson

Research in Accounting Regulation, 2008, vol. 20, issue C, 27-46

Abstract: While major strides toward the convergence of accounting standards have occurred, concern exists that self-interested political pressures, if effective, may create international accounting standards that are not always in the best interest of investors and others. This case study examines comment letters generated by an important accounting topic, Special Purpose Entities (SPEs), in order to gain further insight into whether concerns of political pressure in the development of international accounting standards have merit. Famous since Enron, SPEs are used in off-balance sheet financing vehicles that now involve trillions of dollars annually. During the period when the International Accounting Standards Committee (IASC) was trying to earn the support of the International Organization of Securities Commissions (IOSCO), the IASC’s Standing Interpretations Committee (SIC) issued Draft Interpretation 12 (DI-12), Consolidation of Special Purpose Entities. DI-12 required SPEs to be consolidated more frequently than under US GAAP.

Date: 2008
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:20:y:2008:i:c:p:27-46

DOI: 10.1016/S1052-0457(07)00202-0

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