The use of “public interest” and “public good” as a rationale for corporate reporting in the European Union

• Begoña Giner ^[1] ; Paloma Merello ^[1] ; Araceli Mora ^[1]
  1. [1] Universitat de València

     Universitat de València

     Valencia, España

     
• Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 55, Nº 2, 2026, págs. 168-194
• Idioma: inglés
• DOI: 10.1080/02102412.2025.2588112
• Texto completo no disponible (Saber más ...)
• Resumen

  • This study examines the use and evolution of “public interest” and “public good” notions in corporate reporting regulation in the European Union from 2000 to 2024. We aim to trace how the implicit meaning of these terms has shifted over time, employing two complementary approaches. First, by considering all documents related to corporate reporting issued by the European Commission, we show a change in the context in which these terms are used. Our findings point to a three-step evolution: initially framed within the capital market efficiency, then linked to financial stability, and more recently to a multi-stakeholder and sustainable context. Based on the different theoretical perspectives of public interest, the observed institutional changes in the standard-setting process align with a shift in the public interest theoretical perspective. We conclude by highlighting the potential for unintended effects we emphasize the role of empirical research in anticipating and interpreting their impact.

• Referencias bibliográficas
  • Abela, M., & Mora, A. (2012). Understanding the consequences of accounting standards in Europe: The role of EFRAG. Accounting in Europe,...
  • Acharya, V. V., & Ryan, S. G. (2016). Banks’ financial reporting and financial system stability. Journal of Accounting Research, 54(2),...
  • Alexander, D., & Eberhartinger, E. (2010). The European Union endorsement process for international financial reporting standards: A telos-based...
  • Arce, M., Giner, B., & Taleb, M. A. (2023). Due process as a legitimating mechanism: Participation and responsiveness in the development...
  • Baker, C. R. (2005). What is the meaning of ‘the public interest’? Examining the ideology of the American public accounting profession. Accounting...
  • Barth, M. E., & Landsman, W. E. (2010). How did financial reporting contribute to the financial crisis? European Accounting Review, 19(3),...
  • Bengtsson, E. (2011). Repoliticalization of accounting standard setting - the IASB, the EU and the global financial crisis. Critical Perspectives...
  • Beyer, A., Cohen, D. A., Lys, T. Z., & Walther, B. R. (2010). The financial reporting environment: Review of the recent literature. Journal...
  • Bischof, J., & Daske, H. (2016). Interpreting the European Union’s IFRS endorsement criteria: The case of IFRS 9. Accounting in Europe,...
  • Bischof, J., Daske, H., & Sextroh, C. J. (2020). Why do politicians intervene in accounting regulation? The role of ideology and special...
  • Bischof, J., Laux, C., & Leuz, C. (2021). Accounting for financial stability: Bank disclosure and los recognition in the financial crisis....
  • Botzem, S. (2014). Transnational standard setting in accounting. Accounting Auditing & Accountability Journal, 27(6), 933–955. https://doi.org/10.1108/AAAJ-04-2013-1301
  • Box, R. C. (2007). Redescribing the public interest. Social Science Journal, 44(4), 585–598. https://doi.org/10.1016/j.soscij.2007.10.006
  • Bracci, E., Papi, L., Bigoni, M., Deidda Gagliardo, E., & Bruns, H.-J. (2019). Public value and public sector accounting research: A structured...
  • Brüggemann, U., Hitz, J.-M., & Sellhorn, T. (2013). Intended and unintended consequences of mandatory IFRS adoption: A review of extant...
  • Burlaud, A., & Colasse, B. (2011). International accounting standardisation: Is politics back? Accounting in Europe, 8(1), 23–47. https://doi.org/10.1080/17449480.2011.574412
  • Camfferman, K., & Zeff, S. A. (2018). The challenge of setting standards for a worldwide constituency: Research implications from the...
  • Cervera, N., Giner, B., & Mora, A. (2025). Bank accounting as a tool for financial stability and conflicts of interest: The Spanish case....
  • Cochran, C. E. (1974). Political science and “the public interest”. Journal of Politics, 36(2), 327–355. https://doi.org/10.2307/2129473
  • Dellaportas, S., & Davenport, L. (2008). Reflections on the public interest in accounting. Critical Perspectives on Accounting, 19(7),...
  • DiFabio, C. (2020). The use of public interest arguments in the European accounting field. Accounting in Europe, 17(3), 334–366. https://doi.org/10.1080/17449480.2020.1841904
  • Douglass, B. (1980). The common good and the public interest. Political Theory, 8, 103–117.
  • EFRAG. (2021). Proposals for a relevant and dynamic EU sustainability reporting standard setting. https://finance.ec.europa.eu/document/download/23a44c64-c980-468c-ad15-ee2ea5e2e83f_en?filename=210308-report-efrag-sustainability-reporting-standard-setting_en.pdf
  • Esty, D. C. (2006). Good governance at the supranational scale: Globalizing administrative law. The Yale Law Journal, 115, 1490–1562. https://doi.org/10.2307/20455663
  • European Commission. (2015). Report from the Commission to the European Parliament and the Council: Evaluation of regulation (EC) no. 1606/2002...
  • European Commission. (2018). European Commission. (2018). Consultation document: Fitness check on the eu framework for public reporting by...
  • European Commission. (2019). Communication from the Commission to the European Parliament, the European Council, the European Economic and...
  • European Commission. (2021). Fitness Check on the eu framework for public reporting by companies. Commission Staff Working Document. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021SC0081
  • European Parliament and Council of the EU. (2002). Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July...
  • Fox, C. J., & Miller, H. T. (1995). Postmodern public administration: Toward discourse. SagePublications.
  • García Osma, B., Mora, A., & Porcuna-Enguix, L. (2019). Prudential supervisors’ Independence and income smoothing in European banks. Journal...
  • Gebhardt, G., Mora, A., & Wagenhofer, A. (2014). Revisiting the fundamental concepts of IFRS. Abacus, 50(1), 107–116. https://doi.org/10.1111/abac.12024
  • Giner, B., & Luque-Vílchez, M. (2022). A commentary on the “new” institutional actors in sustainability reporting standard-setting: A...
  • Giner, B., & Mora, A. (2019). Bank loan loss accounting and its contracting effects: The new expected loss models. Accounting and Business...
  • Giner, B., & Mora, A. (2021). Political interference in private entities’ financial reporting and the public interest: Evidence from the...
  • Giner, B., & Mora, A. (2024). The role of the public interest in shaping corporate reporting: Challenges for accounting research. In L....
  • Hantke-Domas, M. (2003). The public interest theory of regulation: Non-existence or misinterpretation? European Journal of Law and Economics,...
  • Hossfeld, C., & Muller-Lagarde, Y. (2018). European public interest. [Research Report] Autorité des normes comptables. ANC.
  • Hossfeld, C., Muller-Lagarde, Y., & Zevounou, L. (2020). The evolution of the European public good assessment in the EU endorsement process...
  • ICAEW. (2012). Acting in the public interest: A framework for analysis.
  • IFRS Foundation. (2018). Constitution. IFRS.
  • Kalt, J. P., & Zupan, M. A. (1984). Capture and ideology in the economic theory of politics. The American Economic Review, 74(3), 279–300.
  • Kanodia, C., & Sapra, H. (2016). A real effects perspective to accounting measurement and disclosure: Implications and insights for future...
  • Killian, S., & Regan O’Philip, P. (2020). Accounting, the public interest and the common good. Critical Perspectives on Accounting, 67-68(6),...
  • Kothari, S. P., Zhang, L., & Zuo, L. (2023). Disclosure regulation: Past, present, and future, handbook of financial decision making.
  • Lambert, R. (2010). Discussion on implications for GAAP from an analysis of positive research in accounting. Journal of Accounting and Economics,...
  • Mahonen, J., & Palea, V. (2024). Analyzing double materiality through the lens of the European political constitution: Implications for...
  • Maystadt, P. (2013). Should IFRS standards be more ‘European’? http://ec.europa.eu/internal_market/accounting/docs/governance/reform/131112_report_en.pdf
  • Mitnick, B. M. (1976). A typology of conceptions of the public interest. Administration and Society, 8, 5–28. https://doi.org/10.1177/009539977600800102
  • Mora, A. (2022). Discussion on moving towards the expected credit loss model under IFRS 9: Capital transitional arrangement and bank systematic...
  • Mora, A. (2025). What about enforcement? Be careful what you wish for, lest it come true! Accounting in Europe, 22(2), 141–149. https://doi.org/10.1080/17449480.2025.2489433
  • Napier, C. J., & Stadler, C. (2020). The real effects of a new accounting standard: The case of IFRS 15 revenue from contracts with customers....
  • Novotny-Farkas, Z. (2016). The interaction of the IFRS 9 expected loss approach with supervisory rules and implications for financial stability....
  • Olejarski, A. (2011). Public good as public interest? The principle of tangibility in eminent domain legislation. Public Integrity, 13(4),...
  • Palea, V. (2015). The political economy of fair value reporting and the governance of the standards setting process: Critical issues and pitfalls...
  • Pelger, C. (2016). Practices of standard-setting - an analysis of the IASB’s and FASB’s process of identifying the objective of financial...
  • Pelger, C., & Spieß, N. (2017). On the IASB’s construction of legitimacy - the case of the agenda consultation project. Accounting and...
  • Peltzman, S. (1976). Towards a more general theory of regulation. Journal of Law & Economics, 19 (2), 211–240. https://doi.org/10.1086/466865
  • Richardson, A. J., & Burkard Eberlein, B. (2011). Legitimating transnational standard-setting: The case of the international accounting...
  • Samuelson, P. A. (1954). The pure theory of public expenditure. Review of Economics and Statistics, 36(4), 387–389.
  • Shakespeare, C. (2020). Reporting matters: The real effects of financial reporting on investing and financial decisions. Accounting and Business...
  • Stigler, G. J. (1971). The theory of economic regulation. Bell Journal of Economics and Management Science, 2(1), 3–21.
  • Van Mourik, C., & Walton, P. (2018). The European IFRS endorsement process - in search of a single voice. Accounting in Europe, 15(1),...
  • Warren, R., Carter, D., & Napier, C. (2020). Opening up the politics of standard setting through discourse theory: The case of IFRS for...
  • Waymire, G., & Basu, S. (2011). Economic crisis and accounting evolution. Accounting and Business Research, 41(3), 207–232. https://doi.org/10.1080/00014788.2011.574266
  • Young, J. J. (1995). Getting the accounting “right”: Accounting and the savings and loan crisis. Accounting, Organizations & Society,...
  • Zeff, S. (2012). The evolution of the IASC into the IASB, and the challenges it faces. The Accounting Review, 87(3), 807–837. https://doi.org/10.2308/accr-50130