One world – One accounting

Erickson, Devon; Esplin, Adam M.; Maines, Laureen A.

doi:10.1016/j.bushor.2009.06.006

Cited by 11 publications

(9 citation statements)

References 9 publications

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“…The wide range of accounting languages that can be found on the global scene or, as it has been called, "Tower of Babel accounting" (Erikson et al 2009), is the starting point for any international accounting study. Nobes (1981Nobes ( ,1983 found that the weaknesses of the ranking studies conducted prior to the 1980s were as follows: fairly inaccurate in defining the ranked items; no statistical models to compare the figures; no hierarchy between ranks; and no explanations for choosing the so-called "major features".…”

Section: Relevant Scholarshipmentioning

confidence: 99%

International Differences in IFRS Policy Choice and the Persistence of Accounting Classification: The Case of China

Rossetti¹,

Verona²

2017

IJBM

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This paper focuses on the application of IFRS standards in China. The research is mainly conducted on the basis of Kvaal and Nobes's studies (2010) regarding the different ways that various countries apply IFRS and Nobes's IFRS accounting classification system (2011). For companies that issued B shares, the use of IFRS in China lasted only until the 2006 ASBE (Accounting Standards for Business Enterprises) reform. The present study examines IFRS overt options in an attempt to 1) review the choices made by Chinese companies to discover -in light of the applicable PRC GAAP (Chinese Local Standards) requirement of that time -whether they were more or less likely to choose an option than the other countries analysed by Nobes & Kvaal; 2) rank China's place within Nobes's accounting classification system; and 3) rank China' place, again in the Nobes's model but also in light of a recent study based on BRICS (Note 1)countries (Sarquis, et al. 2014). The results of the statistical analysis confirm that Chinese financial statements display a "local" nature in their use of IFRS and that in its accounting tendencies, China belongs to the Continental European group rather than with the other BRICS countries.

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Section: Relevant Scholarshipmentioning

confidence: 99%

International Differences in IFRS Policy Choice and the Persistence of Accounting Classification: The Case of China

Rossetti¹,

Verona²

2017

IJBM

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“…Most importantly, global acceptance of a common accounting language will facilitate cross-border investments and the flow of capital (Erickson et al, 2009). Investors, including institutional ones, are among beneficiaries of high-quality financial statements (Florou and Pope, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…Accounting researchers have debated a single set of world accounting standards (Ball, 2006;Buchana, 2003) and "one accounting, one world" (Erickson, 2009). Scholars have also reviewed IFRS credibility and reliability (Alali and Cao, 2010).…”

Section: Introductionmentioning

confidence: 99%

Empirically Investigating Saudi Arabian Accountants’ Readiness to Implement IAS 2

Al-Mousa¹,

Al-Adeem²

2017

FMIR

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This study focuses on practicing accountants in Saudi Arabia to examine their readiness to adopt the mandatory International Financial Reporting Standards (IFRS). More specifically, it investigates the International Accounting Standard for Inventories, an indicator for accountants' understanding of IFRS requirements. To do so, we conduct an online questionnaire survey, which reveals that 52.27% accountants may not be ready for IFRS implementation. The lack of knowledge about certain IAS 2 requirements raises further concerns about accountants' readiness to implement more complicated IFRS, some of which have no comparable local financial accounting standards. These findings draw attention to the effectiveness of IFRS training courses. Further, 57.20% accountants, all of whom reviewed the Saudi Organization for Certified Public Accountants' (SOCPA) website, provided appropriate answers, indicating SOCPA's significant contribution toward the spreading of awareness and knowledge about IFRS. Our findings have implications for practitioners and accounting regulators as well as bodies responsible for standardizing accounting practices in Saudi Arabia. In particular, they suggest steps necessary to increase accountants' readiness for IFRS adoption, which became mandatory since January 1, 2017, for all listed companies. In conclusion, this study serves as a foundation for future research on the topic, which can be extended to the realm of auditors, and obstacles confronting accountants in IFRS implementation.

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“…The recent process of accounting harmonisation made possible by the adoption in 2005 of IFRS represents the beginning of a practice tending to overcome the accounting differences not just at European level but more generally on a worldwide scale for the progressive adoption of a common global accounting language (Mc Gregor, 1999;Erikson, Esplin, & Maines, 2009;Price Waterhouse Coopers (PWC), 2010;Wagenhofer, 2009;Upton, 2010). It emerges a super partes need for a project of convergence between the European discipline IAS/IFRS with the American accounting principles US GAAP, which justifies the progressive harmonisation of these two accounting systems (Tarca, 2005;Schipper, 2005;Callagan & Treacy, 2007;Hail, Leuz, & Wysocki, 2010a).…”

Section: Introductionmentioning

confidence: 99%

“…The exigency of reaching a definition of a unified set of accounting principle will not just result in the effective solution of the 'Tower of Babel accounting' (Erikson et al, 2009) but also improve comparability of data, and financial and economic communication of stock markets (IASB Framework,p. 39).…”

Section: Introductionmentioning

confidence: 99%

Comparability of Company Accounts Using IFRS and US GAAP: Empirical Evidence of European and US Financial Statements

Taplin¹,

Verona²

2016

IJBM

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Purpose-The main objective of this study is to provide a judgment on the comparability of financial statements prepared under IFRS and US-GAAP. We developed two research questions for evaluating comparability within Europe (IFRS) and within the US (US GAAP) and for testing whether comparability is higher or lower when the US companies are included with the European countries.Design/Methodology/Approach-The T index framework was used to summarize the level of comparability for 13 accounting items using data from 250 companies.Findings-Empirical results are mixed. Of 13 accounting items considered, international comparability is significantly lower for 7 items and significantly higher for 4 items when the US companies are included. Furthermore, comparability amongst companies using IFRS is not consistently higher or lower than comparability amongst companies using US GAAP.Practical implications-Answers to the research questions may provide useful suggestions for IASB's current policy direction towards global accounting standards convergence, and in particular for the IASB-FASB convergence project. The results also have implications for companies or countries considering shifting to IFRS or US GAAP.Research limitations/implications-Lack of comparability within countries, rather than between countries, suggests a need to focus on reducing options within standards rather than on differences between standards or countries.Originality value-Our empirical results show that in most cases lack of comparability may be driven by options within a standard rather than by explicit differences between standards.

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One world – One accounting

Cited by 11 publications

References 9 publications

International Differences in IFRS Policy Choice and the Persistence of Accounting Classification: The Case of China

International Differences in IFRS Policy Choice and the Persistence of Accounting Classification: The Case of China

Empirically Investigating Saudi Arabian Accountants’ Readiness to Implement IAS 2

Comparability of Company Accounts Using IFRS and US GAAP: Empirical Evidence of European and US Financial Statements

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