Introduction

In this chapter we set out to investigate the emergence and development of international standard-setting in the field of accounting, with particular reference to financial reporting. Beyond technicalities and dry figures, financial reporting standards shape the categories through which corporate governance actors evaluate each other; thereby also influencing strategies and decision-making (Power 1997).

Historically, the meaning and understanding of accounting standards has been contextualized in national accounting traditions and systems. However, the last decades have seen a proliferation of activities and initiatives to make financial reporting standards comparable across national borders. Developments in accounting are part of a broader movement towards global ordering by means of standardization (Ahrne and Brunsson ch. 4; Drori and Meyer ch. 2). One common characteristic of international standardization is the lack of sanctioning power (cf Jacobsson and Sahlin-Andersson ch. 12). Thus, standard-setting organizations have to struggle for voluntary recognition of their rules. A second common feature is the degree of translation (Czarniawska and Joerges 1996) involved in international standardsetting. Actors that engage in international standard-setting contribute their contextualized interests, perceptions and strategies. The outcome of the standard-setting process is a set of highly formalized rules that need re-contextualization to be implemented. In consequence, struggles around international standards are expected to be quite significant (Brunsson and Jacobsson 2000; Tamm Hallström 2004).