Stakeholders’ expectations versus standard setters’ outcome about crypto assets accounting: A PLS-SEM analysis

Abstract

This research aims to explore the interplay between stakeholders and the US accounting standard setter on the accounting treatment of crypto assets. We applied the beliefs-actions-outcomes (BAO) model to capture stakeholders’ expectations, expressed in their comment letters in response to the Financial Accounting Standards Board’s Exposure Draft (FASB’s ED) on Topic 350, and to assess their expectations’ reflection in the revised version of the standard. We analysed the relationship between stakeholders’ beliefs, proposed actions, and the final standard’s outcome using PLS-SEM (partial least squares structural equation modelling) in SmartPLS. Furthermore, we examine whether feedback from the accountancy profession, a significant stakeholder group in this process, acts as a moderator of the belief-action relationship. The results confirm that the beliefs significantly influence the proposed actions but have a minimal impact on the outcome, with a small number of suggestions for improvement being integrated. The involvement of the accountancy profession moderated the relationship between beliefs and actions, only for the scope and measurement categories, reflecting their specialised knowledge and technical expertise. Through empirical results, current research contributes to the debate on crypto asset regulation by examining stakeholders’ expectations and how their participation has influenced this regulatory field, emphasising the standard-setting body’s responsiveness to their input. The study offers theoretical and practical insights into the interplay between stakeholders’ beliefs, their proposed actions, and the development of crypto accounting regulation (the outcome).