Standard‐setting institutions' user‐oriented legitimacy management strategies: The Canadian case

The objective of this paper is to critically examine the Canadian Accounting Standards Board's (AcSB) legitimacy management strategies directed toward financial statement users. Suchman's legitimacy typology is used as a lens through which the AcSB's legitimacy management strategies directed toward users are analyzed. The data sources consist of documentary public information available for the overall Canadian standard-setting process and for a sample of standard-setting projects. The results indicate that the AcSB devotes much more efforts to symbolic features and cultural accounts than to pragmatic concerns to ensure its legitimacy toward financial statement users. The legitimacy management strategies used mimic those in the USA and at the international level. Such an isomorphism contributes to the AcSB's cognitive legitimacy and overall cultural legitimacy. Future research could assess a standard-setting institution legitimacy management strategies directed to other audiences such as preparers, auditors, or other groups that fall under a broader public interest umbrella. The results provide Canadian users with a general picture of the AcSB's efforts in their regard and invite them to be sceptical and critical about the so-called user perspective in standard setting. It also provides standard setters with a legitimacy framework that they can use to identify areas for improvement to enhance users' view of their legitimacy and to help them better fulfil their mission statement. This paper innovates by studying a standard-setting institution legitimacy management strategies directed toward a specific audience, financial statement users.