A grounded theory analysis of the pre-measurement phase for the accounting recognition of assets

Abstract

This thesis induces a theory for the pre-measurement phase of the asset recognition process in the financial reporting domain centred upon the use of the induced artefact-based asset recognition criteria which are applicable to all assets. In common with standard-setting bodies, such as the International Accounting Standards Board (IASB), I adopt a social constructionist stance (Miller, 1994). It is one that is constructed from a process of consultation. I consult in order to, first, explore the accounting asset recognition process from a conceptual point of view and, second, so that my social construction in that regard can be legitimised, for the most part, on the basis of a consensus of those consulted. However, unlike the standard setters‘ regulatory process, my analysis is structured using a grounded theory approach. The target audience comprises those experts who have been and/or who are currently involved in some way with the development of the IASB‘s conceptual framework (CF) project, including IASB board members. Different data collection methods were adopted combing both qualitative and quantitative data. In respect of the qualitative research, I carried out two sets of interviews. The first set was conducted with Canadian Accounting Standards Board members in May 2008 and International Accounting Standard Board members in June, 2008. The second set was conducted with more International Accounting Standard Board members, UK-Accounting Standard Baord members and other experts within the area being studied. These two sets of interviews were useful for determining the preliminary concepts and categories in the open coding and axial coding structure. In respect of the quantitative research, the concepts and categories raised from the first two sets of interviews were then used to construct an on line questionnaire. The questionnaires were emailed to national standard setters in Canada, the USA, Australia, Germany and the United Kingdom. This has been followed up with an interview with UK ASB director to help in finalising the theory saturation and to validate the reliability of the generated theory. The generated theory demonstrates a three-circled set of criteria for the pre-measurement phase of an asset recognition process. The three-circled set of asset recognition criteria presented in this thesis breaks free from the narrow definitional and rule based perspective of accounting epistemology to offer an alternative view based on the recognition of artefacts.