Coercive pressures on IFRS S1 development - An investigation on behavioural outcomes of IFRS foundation when encompassing the powerful stakeholder influence during the due process of the sustainability-related standard development

Abstract

An investigation has been done on the regulatory behavior of IFRS Foundation when facing exerted coercive pressures within comment letters from the powerful stakeholders during the development, or due process of the sustainability-disclosure standard IFRS S1. However, a dimension of the institutional isomorphism is henceforth connected to this research to explore, and create a holistic view of the actual influence that has been exerted from the powerful stakeholder on the first standard of the IFRS Foundation, which namely is the isomorphic coercive pressure. Moreover, three powerful stakeholder groups have therefore been identified, hence international organizations, accounting firms and NGOs, along with three coercive pressure types, conceptual, economic and “others”. The core aim of this examination is therefore to assess whether or not the IFRS Foundation has taken these coercive pressures into account and formed their standard accordingly, which emphasises the creation of the legitimacy issue as an outcome, where the findings view a partial influence on the behavior of the standard setter.