Essays on the U.S. GAAP-IFRS Convergence Project, the Nature of Accounting Standards, and Financial Reporting Quality (original) (raw)
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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 ...
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We have spent a great deal of time on the continued development of accounting and auditing standards, which are used as a primary component of corporate reporting, to reach today's financial reporting framework. However, is it possible to say that, currently, financial statements provide full and prompt disclosure? Or will they still be useful as a primary element with their current structures in corporate reporting? Undoubtedly, we are deeply concerned about these issues in recent times. This volume contains chapters to discuss the today's and tomorrow's accounting and corporate reporting phenomena in a comprehensive and multidimensional way. Therefore, this book is organized into six sections: "Achieving Sustainability through Corporate Reporting", "International Standardization", "Financial Reporting Quality", "Accounting Profession and Behavioral Aspects", "Public Sector Accounting and Reporting", and "Managerial Accounting".
The Evolution of the Standards of International Accounting and Auditing
Istanbul University - DergiPark, 2017
Ekonomik küreselleşme, birçok alanda olduğu gibi muhasebe uygulamalarını da etkilemiştir. Muhasebe konusundaki etkisi uluslararası muhasebe standartları ve bağımsız denetim alanında kendisini göstermiştir. Avrupa Birliği ülkelerini n 2005 yılında New York borsasından yararlanma isteklerinin baskısı ile bu standartları uygulamaya başlamaları Türkiye'yi de standartların uygulanması doğrultusunda etkilemiştir. Bunun yanında uluslararası kurumların istekleri de bu standartların yaygınlaştırılması doğrultusunda olunca, Türkiye'deki çalışmalar da hızlanmıştır. Son yıllarda Türk Ticaret Kanununun getirdiği hükümler ve Kamu Gözetimi Muhasebe ve Denetim Standartları Kurumunun oluşturulması, Türkiye Muhasebe Standartlarının hazırlanması ve uygulamasını da daha etkin olarak gündeme getirmiştir. Bu gelişmelere paralel olarak dünya çapında şirketlerin kullanacağı ortak bir muhasebe sisteminin oluşturulması amacıyla 1973 yılında IASB (International Accounting Standards Board) kurulmuş ve Uluslararası Muhasebe Standartları (UMS), Uluslararası Finansal raporlama Standartları (UFRS) adı altında uluslararası alanda kabul gören muhasebe standartları oluşturulmuştur. Bu ortak muhasebe uygulamalarının etkin olarak kullanılması amacıyla 1 ocak 2005 tarihinden itibaren Avrupa Birliği'nde halka açık şirketlere, kamuya açıkladıkları konsolide
Convergence of accounting, problems and progress
Journal of Management Research and Analysis, 2023
Today’s economies depend on cross-border transactions and free international flow of capital. These capital allocation decisions require assessment of company’s value. Financial reports are integral and fundamental to such a valuation exercise. However, because of different legal political and economic systems, measurement, analysis, and reporting of many business and financial transactions is country specific. Differences in accounting rules and principles add cost, complexity, and risk for both the companies preparing financial statements and the investors making economic decisions. Such differences complicate comparison of accounting statements prepared under different regimes. This article approaches the problem from two perspectives. The historical perspective helps understand the evolution of accounting into an important business tool and the need to have common accounting practices across the globe. The second perspective looks at the progress made till date to achieve convergence and important areas of economic activity where differences exist. The findings have been arrived at with the help of an in-depth review of available literature. They help conclude that the much sought after convergence is still work in progress as there are large number of economic activities whose accounting treatment differs in different areas of operation. Keywords: Convergence, IFRS, IASB, FASB, Inventory, Leasing
Universal Journal of Accounting and Finance, 2021
Accounting information systems are evolving along with modern information technology, which opens up countless opportunities to expand the intellectual, scientific and professional potential, contributing to the culture and "language" of accounting, professional principles extend beyond one country. However, differences in national and regional accounting systems still persist and reflect not only a diversity of accounting policy views but also deeper structural differences rooted in legal, financial and social systems. The Islamic (partner) accounting model appears to be the least studied and, at the same time, the most different from other accounting models. The economy of Islamic states is an important part of the world economy, so Islamic and other companies operating or investing in an Islamic institutional environment have a direct interest in proper disclosure of accounting information. The major goal of the research is to find similarities and differences between the IFRS and Islamic banking and to prove that it’s beneficial in the modern Islamic countries. In order to assess and compare the IFRS and the Islamic banking practices the authors used comparative analysis and empirical study of the major parts of the both accounting systems. The major findings include the proof of the positive role of Auditing Organization for Islamic Financial Institutions (AAOIFI) which develops norms of convergence of International financial accounting standards (IFRS) and AAOIFI, and the proof that Islamic banking is based on the Sharia and Islamic ethics, but can be based on other principles that are not contrary to Sharia. The authors have come to a conclusion that zakat (religious tax for the poor and needy) is a positive social external effect, and that Islamic accounting is characterized by greater disclosure than traditional accounting.