Theories of Regulation in the Context of Modern Practice of Accounting Regulation

Today, the trend of decentralization of regulation is acquiring new signs, weakening the role of the state in this process. Therefore, a study of the nature of changes and problems of regulation can be useful, both for regulators and for the academic community. The purpose of the article is to analyze the theories of regulation, the rationale for the need to regulate accounting and the model of its regulation at the present stage. The analysis of four theories of accounting regulation was carried out: 1) the theory of public interest; 2) the capture theory (or private interest theory) 3) the economic regulation theory; 4) the ideological theory of regulation in the context of the role of individual actors and different configurations of the participation of the state, market, society, and regulated communities in them. It was proved that inadequate production through external externalities is an argument in favor of the need to regulate accounting and financial reporting standards. It was revealed that at present the most popular theory of accounting regulation is the theory of capture, with elements of ideological regulation theory that have become the standard of accounting regulation. In studies devoted to the analysis of the application of capture theory in practice, the dichotomy between the level of data received by the regulator from the regulated community and the propensity of the regulator to capture dominate. It was proved that, in opposition to the interests of capital groups in the political system, the focus on public interest should be restored. It was determined, that the practical application of the capture theory should be based on a zone of regulatory effectiveness, in which a centrist approach to the development of regulatory policy is created. It facilitates the ability of regulators to create links and share information, while forcing the regulator to act in the public interest, and not in the interest of narrow groups that they should regulate.