Conversations on accounting practices : a study of an enforcement body in a time of regulatory change

Abstract: When EU adopted the International Financial Reporting Standards (IFRS) as a common accounting standard, each member state was required to have external enforcement bodies with responsibility for financial reporting supervision. This thesis investigates Sweden as a case study of how the evolvements initiated at the European level were set to practice in a member state.The thesis adopts a theoretical framework taking its inspiration from Wittgenstein’s ideas on rules and rule-following. In particular, the thesis frames accounting regulation as a regulatory space, where the positions and roles of different actors are outlined in the course of regulatory conversations on accounting practices. Accounting issues related to goodwill impairment testing, measurement of pension liabilities and recognition of deferred tax assets are investigated as empirical examples of enforcement statements. The thesis reminds about the importance of understanding a new regulatory actor in relation to those actors already present within the regulatory space, including non-accountants such as actuaries and valuation specialists. The thesis concludes that whether these actors understand accounting issues as accounting problems is decisive for the enforcement body’s ability to shape accounting practices. In addition, the thesis argues that the existence of shared agreements on how to read the accounting standards are central for their enforceability.