Post by Sapphire Capital on Aug 5, 2008 22:35:38 GMT 4
Fair Value Accounting and Fair Trade: An Analysis of the Role of International Accounting Standard No. 41 in Social Conflict
Charles Elad
University of Westminster; University of Westminster - Westminster Business School
Socio-Economic Review, Vol. 5, Issue 4, pp. 755-777, 2007
Abstract:
The past decade has witnessed a proliferation of accounting pronouncements that indicate that accounting rule-makers around the world are progressively abandoning the traditional historic cost model and actively embracing the fair value paradigm. In this regard, argued that fair value accounting has the capacity to enhance the stewardship function by providing relevant information to stakeholders, thus alleviating social conflict. It is contended here that far from reducing conflict and alienation in the agricultural sector, the fair value approach is underpinned by neoclassical economic ideals that are not conducive to emancipatory accounting. Drawing upon Marx's notion of commodity fetishism, this paper analyses the ideological role of International Accounting Standard (IAS) 41 in legitimating social conflict in the context of fair trade coffee and forestry companies that were compelled by domestic legislation to adopt a full-fledged fair value accounting model in conformity with structural adjustment reforms instituted by the World Bank.
papers.ssrn.com/sol3/papers.cfm?abstract_id=1157711
Charles Elad
University of Westminster; University of Westminster - Westminster Business School
Socio-Economic Review, Vol. 5, Issue 4, pp. 755-777, 2007
Abstract:
The past decade has witnessed a proliferation of accounting pronouncements that indicate that accounting rule-makers around the world are progressively abandoning the traditional historic cost model and actively embracing the fair value paradigm. In this regard, argued that fair value accounting has the capacity to enhance the stewardship function by providing relevant information to stakeholders, thus alleviating social conflict. It is contended here that far from reducing conflict and alienation in the agricultural sector, the fair value approach is underpinned by neoclassical economic ideals that are not conducive to emancipatory accounting. Drawing upon Marx's notion of commodity fetishism, this paper analyses the ideological role of International Accounting Standard (IAS) 41 in legitimating social conflict in the context of fair trade coffee and forestry companies that were compelled by domestic legislation to adopt a full-fledged fair value accounting model in conformity with structural adjustment reforms instituted by the World Bank.
papers.ssrn.com/sol3/papers.cfm?abstract_id=1157711