Financialisation of global markets: the role of private sector accounting standard setting

Deborah Anderson, Tomo Suzuki

Research output: Contribution to journalArticlepeer-review

Abstract

Financial reporting often creates new realities rather than merely reflecting reality. How, then, would the globalization of International Financial Reporting Standards (IFRS), as a specific mode of presenting reality, affect our markets? Drawing on fair value accounting instead of traditional historical cost accounting, IFRS makes the business realm and society amenable to financialisation. This process of converting real markets into tradable components, particularly by the private sector, may not contribute to sustainable market growth. This paper introduces three case studies to illustrate the significant impact IFRS makes on real sector markets. These consequences would in turn affect financial markets in the long term.

Original languageEnglish
Pages (from-to)20-26
Number of pages7
JournalLaw and Financial Markets Review
Volume8
Issue number1
DOIs
Publication statusPublished - 2014 Mar 31
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Law

Fingerprint Dive into the research topics of 'Financialisation of global markets: the role of private sector accounting standard setting'. Together they form a unique fingerprint.

Cite this