How do global crises impact accounting regulation? 2008 financial crisis and COVID-19 in the EU IFRS regulatory space

This study explores the regulatory debate and outcomes of the 2008 financial crisis and the COVID-19 crisis to shed light on the factors influencing accounting regulation responses to global crises. Through the theoretical lens of the regulatory space, it examines the discourse and responses of the regulatory actors in their efforts to address these crises in relation to the application of IFRS within the EU. By means of a two-step analysis of multiple public sources, we find that crisis outcomes resulted from several factors and their interactions, including the characteristics of the crises and political dimensions, such as interorganizational linkages among space participants. The 2008 financial crisis sparked a vigorous debate, leading to technical and political consequences in the short and long term. Conversely, regulatory space participants demonstrated a cooperative approach during the COVID-19 crisis, recommending flexibility in the application of existing standards. This study provides insights into the accounting consequences of crises by elucidating path dependency in both the accounting standards and political realms. Thus, it emphasizes the importance of a nuanced examination of technical and political consequences in standard setting, as well as their time horizons. © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2024.