Transformation of accounting through digital standardisation: tracing the construction of the IFRS Taxonomy

Indrit Troshani, Joanne Locke, Nicholas Rowbottom

    Research output: Contribution to journalArticlepeer-review

    10 Citations (Scopus)
    773 Downloads (Pure)

    Abstract

    Purpose: Corporate reporting infrastructure and communication are being transformed by the emergence of digital technologies. A key element of the digital accounting infrastructure underpinning international corporate reporting is the IFRS Taxonomy, a digital representation of international accounting standards that is required by firms to produce digital corporate reports. The purpose of this paper is to trace the development, governance and adoption of the IFRS Taxonomy to highlight the implications for accounting practice and standard-setting.

    Design/methodology/approach: The authors mobilise Actor Network Theory and a model of transnational standardisation to analyse the process surrounding the formation and diffusion of the IFRS Taxonomy as a legitimate “reference” of the IFRS Standards. The authors trace the process using interview, observation and documentary evidence.

    Findings: The analysis shows that while the taxonomy enables IFRS-based reporting in the digital age, tensions and detours result in the need for a realignment of the perspectives of both accounting standard-setters and taxonomy developers that have transformative implications for accounting practice and standard-setting.

    Originality/value: The study explains how and why existing accounting standards are transformed by technology inscriptions with reflexive effects on the formation and diffusion of accounting standards. In doing so, the paper highlights the implications that arise as accounting practice adapts to the digitalisation of corporate reporting.
    Original languageEnglish
    Pages (from-to)133-162
    Number of pages30
    JournalAccounting, Auditing and Accountability Journal
    Volume32
    Issue number1
    Early online date29 Nov 2018
    DOIs
    Publication statusPublished - 15 Jan 2019

    Keywords

    • Actor network theory (ANT)
    • Circulating reference
    • IFRS
    • IFRS Taxonomy
    • Standardisation
    • Translation

    ASJC Scopus subject areas

    • Accounting
    • Economics, Econometrics and Finance (miscellaneous)

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