Table 1

Six events identified in the study and main narrative mechanisms

Identification (relevant dates)EventDescriptionCategory of eventNarrative mechanismsRegulatory outcome
FCE 1 (2003–2005)IFRIC D1 Consultation and IFRIC 3 withdrawalIFRIC issued a draft interpretation (IFRIC D1 Emission Rights) for public consultation in 2003, an interpretation in 2004 and withdrew it in 2005, considering EFRAG’s negative endorsementHigh-stakes Event
  • -

    Clear limit in time

  • -

    Open to public and focused on AER

IASB central stage by launching the first ever consultation on AER (agenda-setting)
“Practice diversity” narrative (power of interpretation)
IASB sets the agenda: AER to deal with “practice diversity”
Solution contested by EFRAG: IASB withdraws the IFRIC
FCE 2 (2007–2010)IASB FASB Joint projectIn 2007 FASB included “Emission Trading Schemes” in its agenda, joining forces with IASB. Meetings and discussions papers were ineffective and the interest on this issue faded away by 2010Regular Event
  • -

    Blurred time limit, growing number of meetings dealing with subcategories of technical issues

  • -

    Weak openness: broadened scope of emission trading schemes and limited to two standard setters

IASB holds interest in the topics and remains in a leading position. The scope of the project is broadened (power to impose definition)
The scope of participants is narrowed. (power of central actors)
IASB broadens the topic and puts it out of a due process
FCE 3 (2011)IASB Agenda ConsultationAfter the agenda consultation to prioritize accounting standard projects, “Emissions trading schemes” suspended and included in “Research projects”Regular Event
  • -

    Event that is regularly planned beyond the scope of AER.

  • -

    Interaction not limited to AER

IASB still concerned with the topic, but delegate decision to stakeholders (power of positions among actors)
It justifies moving AER out of a new due process (power of setting the agenda)
IASB gets confirmation of stakeholders to maintain the topic out of a due process
FCE 4 (2013)EFRAG ConsultationFailed EFRAG attempt to urge IASB to move forward by launching a consultation urgingHigh-stakes Event
  • -

    Temporally bounded

  • -

    Interactions focused on AER

EFRAG attempts to lead setting new agenda and imposing new definitions in AER (power of setting the agenda, power of interpretation). IASB does not reconsider the topic (power of setting the agenda)Alternative regulator makes a proposal
IASB resists the proposal
FCE 5 (2013–2014)Australian Accounting Standards Board request to IFRS Interpretation CommitteeThe AASB asked IFRS Interpretation Committee to issue guidance on the valuation of liabilities under emission trading schemes. IFRS declined because it did not meet the “agenda criteria of the Interpretations Committee”Regular Event
  • -

    No temporal bounding

  • -

    Interactions limited to two standard setters (ad hoc discussion)

IASB resists the proposal to put the topic in the agenda (power of agenda-setting).Topic excluded from the agenda
FCE 6 (2014–2016)IASB Agenda ConsultationDiscussion initiated by the Global Preparers Forum and the Accounting Standards Advisory Forum, followed by an agenda consultation that included the relabelled “Pollutant Pricing Mechanisms” project, which ended up in the “research pipeline”Regular Event
  • -

    Event that is regularly planned beyond the scope of AER.

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    Interactions not limited to AER

Topic reworded and extended by IASB to “Pollutant Price Mechanisms” (power of interpretation)
Topic must now align to the conceptual framework (power of interpretation)
IASB changes the definition of the topic and connects it to the framework

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