Accounting and reporting convergence [Abstract]

Annales Universitatis …, 2009

The ultimate goal of a move to IFRS International Financial Reporting Standards is the rigorous application of a single set of global accounting standards, which will produce highquality, (International Financial Reporting Standards) in the US undoubtedly would mark a significant change for many US companies. It would require a shift to a more principles-based approach, place far greater reliance on management (and auditor) judgment, and spur major changes in company processes and systems.

Accounting has no meaning without standards due to professionalism. The use and application of standards in accounting gets so importance that it will not go wrong if it is termed as a legal discipline. By the time, the world has given accounting the certification of international discipline. So, it is apt to say that as an international discipline, accounting should have a single set of standards for all for harmonizing the practice in a global scenario. But the reality is that we still have various streams of accounting standards like US GAAP, UK GAAP, IAS, and so on. These different streams are the threat for accounting against its harmonization of practices. Though the world has witnessed a lot of initiatives taken to reduce the streams into one in recent years, still we cannot ensure the final sophistication in this regard. The paper focuses on the convergence issue, its current status, challenges with special reference to Indian perspective.

International convergence of accounting standards is not a new idea. The concept of convergence first arose in the late 1950s in response to post World War II economic integration and related increases in cross-border capital flows. Initial efforts focused on harmonization—reducing differences among the accounting principles used in major capital markets around the world. By the 1990s, the notion of harmonization was replaced by the concept of convergence—the development of a unified set of high-quality, international accounting standards that would be used in at least all major capital markets. International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements. IFRS provides general guidance for the preparation of financial statements, rather than setting rules for industry-specific reporting.

The movement of business toward a global economy has accelerated the need to move toward global accounting standards. Two recent decisions by the United States Securities and Exchange Commission, SEC, have had a major impact on the issue of converging US GAAP and international accounting standards. This paper examines the implications of the SEC decision to allow foreign companies to use IFRS in financial reporting without reconciliation to US GAAP on investors, multinational corporations, and global financial reporting. The decision of the SEC to unite world regulators on the convergence of global accounting standards is also reviewed. The European Commission, the Japan Financial Services Agency, and the International Organization of Securities Commission, IOSC are to be included in the International Accounting Standards Committee Foundation IASCF in an IASCF Monitoring Group (SEC, 2008). Differences between IFRS and US GAAP are examined. The authors’ conclusion is that it is both ...

I dedicate this thesis to my parents, Mustafa and Amal Sawani. Without their duaas, patience, understanding support and most of all love, the completion of this work would not have been possible. v ACKNOWLEDGMENTS I wish to give thanks and praise first and foremost to Allah for giving me the strength and fortitude to complete this degree. I wish to thank my family in particular my parents, brother, Ali, whose support was essential to my completion of this dissertation and sister, Abrar, who tirelessly collected data with me. I wish to express my deep gratitude and thanks to Dr. Steve Lin, for his dedication, guidance and enthusiasm in helping me develop my proposal and making this dissertation possible. I would also like to thank the many professors at Florida International University's School of Accounting for their encouragement and guidance throughout the last four years as I worked toward completion of my degree. I would also like to thank my fellow graduate students in the accounting program for their comradery and support. Finally, I want to thank the KPMG Foundation for awarding me the Minority Accounting Doctoral Scholarship for the duration of my time as graduate student. vi

2010

The objective of the present paper is to provide a synopsis of the recent international financial reporting developments as well as to identify some of the related worldwide implications. The unprecedented joint activity of the International Accounting Standards Board (IASB)

Mediterranean Journal of Social Sciences, 2014

Abstract In spite the important of the global accounting convergence of IFRS in firms operations of various countries in terms of globalization of financial markets, standardizing the diverse accounting policies around the globe and the facilitation of high quality, transparent and comparable information in financial statements. But then, only few developing and even developed nations give concerned on such global accounting convergence of IFRS. In line with this, the objective of this paper is to examine the effect of two variables i.e. IFRS acceptability and IFRS enforceability on such global accounting convergence of IFRS through the perceptions of preparers and users of financial reporting. Data of the study were collected through self – administered and online survey, in which 300 questionnaire was sent to the preparers and users of financial reporting in Nigeria. The study used convenient sampling technique; data were analyzed using Statistical Package for Social Science (SPSS) version 19. Descriptive statistic, factor analysis, correlation matrix and finally, multiple regression analysis were carried out. The result findings of the analysis revealed that, IFRS acceptability and IFRS enforceability has significant positive relation with the global accounting convergence of IFRS. Finally, conclusion was provided and the direction for future research was also provided. Keywords: IFRS acceptability, IFRS enforceability, global accounting convergence, companies

Scholedge International Journal of Business Policy & Governance ISSN 2394-3351, 2016

The Financial Accounting Standard Board (FASB) and the International Accounting Standard Board (IASB) have been working jointly toward the convergence of the U.S. generally accepted accounting principles (GAAP) and the international financial reporting standards (IFRS). However, several arguments still exist as to whether or not U.S. companies should adopt or converge with IFRS. This qualitative study identified the differences noted between rules-based and principles-based accounting, and discussed the impact of these accounting standards on financial reporting. Additionally, several resources were analyzed to understand the path to convergence and the future state of IFRS. The examination of information regarding the transition towards one single set of accounting standards led to the development of two alternate conclusions. Although research allows for the belief that convergence with IFRS is imminent, the fact remains that FASB and IASB will need to work diligently in order to ...

Purpose-This paper studies quantitative, monetary information about differences between IFRS and US GAAP in the three principal financial statements. 3