The purpose of this paper is to examine charity regulatory systems, including accounting standard setting, across five jurisdictions in varying stages of adoption of International Financial Reporting Standards, and identifies the challenges of this process.
Using a regulatory space approach, this paper relies on publicly available archival evidence from charity regulators and accounting standard setters in five common‐law jurisdictions in advanced capitalist economies, all with vibrant charity sectors: the UK, the USA, Canada, Australia and New Zealand.
The study reveals the importance of co‐operative interdependence and dialogue between charity regulators and accounting standard setters, indicating that jurisdictions with such inter‐relationships will better manage the transition to IFRS. It also highlights the need for those jurisdictions with not‐for‐profit or charity‐specific accounting standards to re‐configure those provisions as IFRSs are adopted.
The study is limited to five jurisdictions, concentrating specifically on key charity regulators and accounting standard setters. Future research could widen the scope to other jurisdictions, or track changes in the jurisdictions longitudinally.
This paper provides a timely international perspective of charity regulation and accounting developments for regulators, accounting standard setters and charities, specifically of regulatory responses to IFRS adoption.
The paper contributes fresh insights into the dynamics of charity accounting regulation in an international context by using regulatory space as an organising framework. While accounting regulation literature provides a rich interpretation of regulatory issues within the accounting arena, little attention has been paid to charity accounting regulation.
