Private interest theory was selected to evaluate the current regime because it is well placed to explain the reasons for the various interest groups (members of accounting professional bodies.
Capture theory and regulation similarity of economic interest theory (private interest theory) with capture theory (m j r gaffikin, regulation as an accounting theory, 2009, para 25) the theories suggest that regulations are driven by forces of supply and demand the government represents the supply side while the interest groups.
Why private interest theory should be used to evaluate the adequacy of the their self interest this theory proposes that private interests rather than public 12 research in accounting regulation 3, 4 18 john carey, ‘the independence concept revisited’ (1985) ohio cpa journal 5. The theory suggests that regulations are set of policies driven by forces of supply and demand the government is placed on the supply side while the interest groups on the demand side the theory suggests that regulation is developed by the industry and that the objective of regulations is to create advantages to the industry concerned. Private interest theory producer groups of regulation able to use the power of government for their own advantage: 1 organised interest group – seeking political protection other groups (more diffuse) have limited ability to bid effectively (due to organisation and information cost) 2.
The water accounting standards board (wasb), australia's national water accounting standard setter, defines water accounting as “a systematic process of identifying, recognising, quantifying, reporting, and assuring information about water, the rights and other claims to. The contrasting view is the private-interest of economic theory in this theory, those who are involved in government have the same motivations that those in the private sector have that is, they are motivated by a narrow concept of self interest: wealth, fame, and power.
We use your linkedin profile and activity data to personalize ads and to show you more relevant ads you can change your ad preferences anytime. Financial accounting theory introduction the aim of this paper is to consider three theories of regulation, the public interest theory, the capture theory and the economic interest theory these three theories attempt to explain why a particular phenomena in the regulation process occurs and as such they are positive theories. Private interest theory is the main regulatory theory which emphasises the need for standard setters to intervene because of market inefficiencies and inability to self regulate private interest or (economic interest theory) is based on an assumption similar to pat that individuals seek to act in their own self interest. Regulation as accounting theory michael gaffikin theories of regulation are discussed and compared some important issues relating to regulation as a substitute for research in creating theory as discussed.