The financing of the IASB: An analysis of donor diversity

Journal of International Accounting, Auditing and Taxation 20 (2011) 1–19

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Journal of International Accounting,
Auditing and Taxation

The financing of the IASB: An analysis of donor diversity
Robert K. Larson a,∗ , Sara York Kenny b a b

Department of Accounting, University of Dayton, Dayton, OH 937-229-2497, United States
IFRS Interpretations Committee, and Retired, International Finance Corporation, World Bank Group, United States

a r t i c l e

i n f o

Keywords:
International Accounting Standards Board
IASB
International Financial Reporting Standards
IFRS
Financing
Legitimacy

a b s t r a c t
The U.S. Securities and Exchange Commission (SEC) and others are concerned about the funding of the International Accounting Standards Board (IASB), which is widely recognized as the global accounting standard-setting organization. Issues raised include the long-term viability and legitimacy of the IASB due to its historic reliance on voluntary donations, which in turn has led to questions about the IASB’s independence and whether donors to the IASB might be able to exert undue influence in the standard-setting process. These issues are critical factors in the SEC’s analysis of the adoption of International Financial Reporting
Standards in the U.S. This exploratory study investigates these concerns by examining the funding of the IASB with a focus on the characteristics of donors and their national and stakeholder interest group diversity.
While the IASB’s donor base is still relatively small and voluntary contributions from individual corporations and public accounting firms are still substantial, the findings suggest that many SEC concerns are being addressed. More permanent funding mechanisms are being developed and more transparency of donors and the size of their contributions exist.
The IASB’s donor base has expanded in both geographic and stakeholder interest group diversity. No

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