The International Accounting Standards Board’s 2018 Conceptual Framework on user perspective: An application of stakeholder theory

Abstract

The Conceptual Framework (CF), published by the International Accounting Standards Board (IASB), serves as a guide for nations creating general-purpose financial reports (GPFRs) for organizations (Gore & Zimmerman, 2007). This study attempts to critically evaluate the decision of the IASB to limit the primary users of the GPFRs in the 2010 and 2018 CF to financiers only from a stakeholder theory perspective. This study used a qualitative meta-analysis method to incorporate earlier qualitative studies in the area to derive deeper meanings through an interpretive process. This study reaffirms the ongoing issue of why the IASB supports the financiers as the primary user group of GPFRs. We found that the managerial branch of stakeholder theory fully supports the decision of the IASB to limit the primary user of the GPFRs to financiers only as management considers the financiers as the most influential stakeholder group whose information needs must be fulfilled under all the circumstances. This study has added to the existing body of knowledge by bringing much-needed clarity to the preparers of GPFRs. However, from a broad user and other theoretical standpoint, we strongly advise future studies to critically analyze the implications of the IASB’s decision to reclassify financiers only as the primary users of GPFRs.