Regulatory theory insights into recent developments in standard setting in South Africa

The purpose of this study is to explore changes in standard setting in South Africa using a regulatory theory perspective. The article focuses on three events: the adoption of the International Financial Reporting Standards, the adoption of the International Financial Reporting Standards for Small and Medium-sized Enterprises, and the change in standard setting with control of standard setting passing from the accounting profession to the Financial Reporting Standards Council. The methodology is qualitative, using primary and secondary sources of information. The findings show that elements of and changes in these three events reflect regulatory theory's sub-category of public interest theory, although elements of private interest theory, in particular interest group capture theory, are present. The importance of this study is that it discusses recent developments in standard setting in South Africa using a regulatory theory lens and provides an alternative viewpoint when analysing standard setting in other jurisdictions.