The academic community's participation in standard setting: Submission of comment letters on SFAS nos. 1-117

Academicians can play a unique roll in FASB deliberations since they are economically independent and they should have the theoretical understanding necessary to evaluate issues. The academic community's participation in the FASB's standard-setting process is examined. Few academicians submitted comment letters on Discussion Memorandums and Exposure Drafts for SFAS Nos. 1-117, with the majority participating only once. Results indicate that the frequency of responses and participants' characteristics changed somewhat over time. Survey responses indicate that participants submitted comment letters primarily when they were concerned about the topic or had conducted related research and felt that they could contribute to FASB deliberations. Participation is deterred by low expectations of affecting FASB decisions, lack of time or resources, inadequate rewards for this activity at their universities and the technical nature of the issues.