Stakeholder participation in the development of International Public Sector Accounting Standard 42, Social Benefits

Abstract

This study aims to contribute to the understanding of stakeholder participation within the International Public Sector Accounting Standards Board's (IPSASB) due process. This study examines IPSASB's input legitimacy by analysing who the respondents are in exposure draft (ED) 63, Social Benefits, and to what extent they support the ED; however, the emphasis lies on the quality of the IPSASB's due process through the legitimacy theory, more precisely procedural legitimacy, by investigating to what extent the respondents’ input was considered and integrated into the final International Public Sector Accounting Standards. Most respondents originate from Europe and Oceania and consist of professional associations and public sector entities. There are indications that some respondents’ input was integrated; however, results indicate a clear flaw in the lack of transparency regarding how respondents’ input is analysed, which makes the decision-making process seem arbitrary and subjective and could potentially have a negative effect on the IPSASB's legitimacy.