The Political Approach in Accounting Standards setting and its Impact on the Accepted Accounting Practices A field Study in the Iraqi Environment

Abstract

The degree of intervention and contribution in the formulation of an accounting standard and its acceptance is based on the degree of influence of the applications of that accounting standard on stakeholders. therefore, adopting a certain approach in the formulation of standards is considered important stemming from the degree of its impact on the special interests that would be affected by the applications that are to be obligated on the parties that will adopt them when expressing those interests. Based on above, the current study launches from the problem of the need for compatibility between the different beneficiaries and stakeholders in the formulation of accounting standards. Therefore this research aims at expounding the impact of the political approach in formulating accounting standards for preparers and users of accounting information, and the possibility of adopting the political approach to reach a consensus among multiple perspectives through the participation of all parties to provide rational accounting information for users . In order to achieve the goals of the study ,the main hypotheses was formulated based on the study problem. In order to achieve the study objectives , the study used the theoretical analysis approach and the field work of the study used a questionnaire form designed to survey the opinions of community of accounting information preparers and the benefiting parties. The study concluded existence of a relationship and significant impact of the political approach on the accounting practices accepted by preparers and users. Based on that, the study suggests activating the role of the political approach for formulating the standards in order to gain acceptance.