AN EXAMINATION OF PERCEPTIONS AND ACCEPTANCE OF ACCOUNTING INNOVATIONS AND CHANGES BY ACCOUNTING INTEREST GROUPS: IMPLICATIONS FOR THE FINANCIAL ACCOUNTING STANDARDS-SETTING PROCES

Some accounting standards fail to gain acceptance by the financial community. In order to successfully implement a standard, the FASB needs information regarding the determinants of the level of acceptance of that standard.;This study provides evidence that the formulation and implementation of policies by the FASB approximates a social change process. The literature has suggested: (1) perceived attributes; (2) personal and social characteristics; and (3) group membership as factors associated with innovation acceptance. The empirical portion of this study tested the significance and relative efficacy of these variables.;A questionnaire was used to gather data regarding the attitudes, perceptions and characteristics of members of the following groups: academicians, bank loan officers, financial executives, financial analysts, management accountants, accounting practitioners in "Big 8" CPA firms, and practicing CPAs from smaller firms. A sample of 150 names was drawn from each group.;The innovations incorporated in the questionnaire included: (1) current value accounting; (2) differential disclosures for large and small businesses; (3) advertising capitalization; and (4) financial forecasts.;Most hypotheses were tested using multiple regression analysis. The dependent variable was the reported level of acceptance of an innovation measured on a five-point scale. The independent variables included: (1) perceived attributes; (2) personal and social characteristics; and (3) group membership.;The perceived attributes and the personal and social characteristics were significant predictors across all four innovations. Group membership was a significant explanatory variable for two of the four innovations. The computation of relative influence percentages provided evidence that perceived attributes possess greater explanatory power than personal and social characteristics. This implies that the FASB should concentrate on disseminating information regarding the attributes of its standards.;Further tests provided evidence that there are differences in the rank order of importance of the attributes across groups and innovations. The implication is that different attributes need to be emphasized depending upon the standard and groups involved.