In the current context of globalization, accountability has become a key subject of real interest for both, national and international business areas, due to the need for comparability and transparency of the economic situation, so we can speak about the harmonization and convergence of international accounting. The paper presents a qualitative research through content analysis of several reports concerning the roadmap for convergence. First, we develop a conceptual framework for the evolution of standards’ convergence and further we discuss the degree of standards harmonization and convergence between US GAAP and IAS/IFRS as to October 2012. We find that most topics did not follow the expected progress. Furthermore there are still some differences in the long-term project that are in process to be completed and other that were reassessed as a lower priority project.
<p>[1] R.R. Yallapragada, “Incorporating International Financial Reporting
Standards Into The United States Financial Reporting System: Timeline
And Implications”, International Business & Economics Research
Journal, vol. 11, no. 3, 2012, pp. 283-290.
[2] C.W. Nobes, and R. Parker, Comparative international accounting, 10th
edition, Prentice Hall Financial Times, Pearson Education Limited,
England, 2008.
[3] R.V. Mustată, Sisteme de măsurare a armonizării si diversitătii
contabile- între necesitate si spontaneitate, Casa Cărtii de Stiintă, Cluj
Napoca, 2008.
[4] L.G. Van der Tas, “Evidence of EC financial reporting practice
harmonization: The case of deferred taxation”, European Accounting
Review, vol. 1, no. 1, 1992, pp. 69-104.
[5] 5S. Aisbitt, “Measurement of harmony of financial reporting within and
between countries, the case of the Nordic countries”, European
Accounting Review, vol. 10, no. 1, 2002, pp. 51-72.
[6] C.N. Albu, N. Albu, S. Fekete, et al., “Implementation of IFRS for
SMEs in Emerging Economies: Stakeholder Perceptions in the Czech
Republic, Hungary, Romania and Turkey”, Journal of International
Financial Management and Accounting, vol. 24, no. 2, 2013, pp. 140-
175.
[7] J. Strouhal, J. Mackevičius, and S. Zverovich, “Comparison of the
Reporting Bases: Case of Czech and Lithuania”, International Advances
in Economic Research, vol. 14, no. 4, 2008, pp. 483-484.
[8] C.S. Armstrong, M.E. Barth, A.D. Jagolinzer, and E.J. Riedl, “Market
Reaction to the Adoption of IFRS in Europe”, The Accounting Review,
vol. 85, no. 1, 2010, pp. 31-61.
[9] R.C. Baker, and E.M. Barbu, “Trends in research on international
accounting harmonization”, The International Journal of Accounting,
no. 42, 2007, pp. 285-286.
[10] J. Strouhal, C.G. Bonaci, A. Deaconu, L. Müllerová, and M. Paseková:
“SMEs Stakeholders’ Needs on Valuation and Financial Reporting”,
International Advances in Economic Research, vol. 16, no. 4, 2010, pp.
425-426.
[11] H. Erchinger, and W. Melcher, “Convergence between US GAAP and
IFRS: Acceptance of IFRS by the US Securities and Exchange
Commission (SEC)”, Accounting in Europe, vol. 4, no. 2, 2007, pp. 123-
139.
[12] C.G. Bonaci, D. Matis, and J. Strouhal, “Crisis of Fair Value
Measurement? Some Defense of the Best of All Bad Measurement
Bases”, WSEAS Transactions on Business and Economics, vol. 7, no. 2,
2010, pp. 114-125.
[13] L. Evans, and C. Nobles, “Harmonization relating to auditor
independence: The Eighth Directive, the UK and Germany”, European
Accounting Review, vol. 7, no. 3, 1998, pp. 493-516.
[14] S. Fekete, Cercetare conceptuală si empirică privind raportările
financiare din România si Ungaria; Convergentă si conformitate cu
IFRS, Casa Cărtii de Stiintă, Cluj Napoca, 2009.
[15] J. Strouhal, C.G. Bonaci, and E.A. Matis, “Corporate Governance
Lesson Taught by the Financial Crisis: A Research Note”, International
Journal of Mathematical Models and Methods in Applied Sciences, vol.
5, no. 3, 2011, pp. 688-695.
[16] D. Haskin, and T. Haskin, “Hierarchy of GAAP vs. IFRS – The Case of
Bankruptcy Accounting”, International Business & Economics Research
Journal, vol. 11, no. 4, 2012, pp. 369-374.
[17] J. Strouhal, L. Müllerová, Z. Cardová, and M. Paseková, “Testing the
Compatibility of Czech Reporting from the SMEs Perspective”, WSEAS
Transactions on Business and Economics, vol. 6, no. 12, 2009, pp. 620-
629.
[18] K. Schipper, “The introduction of international accounting standards in
Europe, implications for international convergence”, European
Accounting Review, vol. 14, no. 1, 2005, pp. 101-126.
[19] J. Strouhal, C.G. Bonaci, and D. Matis, “Fair Value Accounting: An
Historical Perspective”, International Advances in Economic Research,
vol. 15, no. 4, 2009, pp. 490-491.
[20] A. Tarca, “International convergence of accounting practices: Choosing
between IAS and US GAAP”, Journal of International Financial
Management and Accounting, vol. 15, no. 1, 2004, pp. 60-91.
[21] P.E. Hopkins, C.A. Botosan, M.T. Bradshaw, et al. “Response to the
SEC Release, ‘Acceptance from Foreign Private Issuers of Financial
Statements Prepared in Accordance with International Financial
Reporting Standards Without Reconciliation to U. S. GAAP File No. S7-
13-07’”, Accounting Horizons, vol. 22, no. 2, 2008, pp. 223-240.
[22] R.R. Yallapragada, W.C. Roe, and A.G. Toma, “The prospects of
replacing GAAP with IFRS In the United State”, International Business
& Economics Research Journal, vol. 12, no. 1, 2013, pp. 25-30.
[23] D.S. Ruder, C.T. Canfield, and H.T. Hollister, “Creation of Worldwide
Accounting Standards: Convergence & Independence”, Northwestern
Journal of International Law and Business, Symposium on the
Convergence of Accounting Standards, 2005, pp. 513-588.
[24] W.W. Poon, SEC Work Plan for the Consideration of Incorporating
IFRS into the U. S. Financial Reporting System, Proceedings of the
Northeast Business & Economics Association, 2010, pp. 101-104.
[25] H.D. Grove, and J.D. Bazley, “Disclosure strategies for harmonization
of international accounting standards”, The International Journal of
Accounting, vol. 28, no. 2, 1993, pp. 116–128.
[26] D.L. Street, and K.A. Shaughnessy, “The quest for international
accounting harmonization: A review of the standard setting agendas of
the IASC, US, UK, Canada, and Australia, 1973–1997”, The
International Journal of Accounting, vol. 33, no. 2, 1998, pp. 179–209.
[27] C.W. Nobes, “Compliance by US Corporations with IASC Standards”,
British Accounting Review, no. 22, 1990, pp. 41–49.
[28] C.G. Bonaci, R.V. Mustata, and D. Matis, “Accounting standard setting
in the international arena: update on the convergence project”, Analele
Universităţii din Oradea, TOM XXI, 2012, pp. 866 – 872.
[29] Grant Thornton, Comparison between US GAAP and International
Financial Reporting Standars, 3rd edition, 2012.
[30] KPMG (October 2012), IFRS compared to US GAAP: An overview,
2012.
[31] PwC (October 2012), IFRS and US GAAP: similarities and differences,
2012.
[32] C. Ohlgar, and E. Steve, „IFRS Yes, No, Maybe: What US Companies
Need to Know”, Financial Executive, vol. 27, no. 8, 2011, pp. 39-43.</p>
<p>[1] R.R. Yallapragada, “Incorporating International Financial Reporting
Standards Into The United States Financial Reporting System: Timeline
And Implications”, International Business & Economics Research
Journal, vol. 11, no. 3, 2012, pp. 283-290.
[2] C.W. Nobes, and R. Parker, Comparative international accounting, 10th
edition, Prentice Hall Financial Times, Pearson Education Limited,
England, 2008.
[3] R.V. Mustată, Sisteme de măsurare a armonizării si diversitătii
contabile- între necesitate si spontaneitate, Casa Cărtii de Stiintă, Cluj
Napoca, 2008.
[4] L.G. Van der Tas, “Evidence of EC financial reporting practice
harmonization: The case of deferred taxation”, European Accounting
Review, vol. 1, no. 1, 1992, pp. 69-104.
[5] 5S. Aisbitt, “Measurement of harmony of financial reporting within and
between countries, the case of the Nordic countries”, European
Accounting Review, vol. 10, no. 1, 2002, pp. 51-72.
[6] C.N. Albu, N. Albu, S. Fekete, et al., “Implementation of IFRS for
SMEs in Emerging Economies: Stakeholder Perceptions in the Czech
Republic, Hungary, Romania and Turkey”, Journal of International
Financial Management and Accounting, vol. 24, no. 2, 2013, pp. 140-
175.
[7] J. Strouhal, J. Mackevičius, and S. Zverovich, “Comparison of the
Reporting Bases: Case of Czech and Lithuania”, International Advances
in Economic Research, vol. 14, no. 4, 2008, pp. 483-484.
[8] C.S. Armstrong, M.E. Barth, A.D. Jagolinzer, and E.J. Riedl, “Market
Reaction to the Adoption of IFRS in Europe”, The Accounting Review,
vol. 85, no. 1, 2010, pp. 31-61.
[9] R.C. Baker, and E.M. Barbu, “Trends in research on international
accounting harmonization”, The International Journal of Accounting,
no. 42, 2007, pp. 285-286.
[10] J. Strouhal, C.G. Bonaci, A. Deaconu, L. Müllerová, and M. Paseková:
“SMEs Stakeholders’ Needs on Valuation and Financial Reporting”,
International Advances in Economic Research, vol. 16, no. 4, 2010, pp.
425-426.
[11] H. Erchinger, and W. Melcher, “Convergence between US GAAP and
IFRS: Acceptance of IFRS by the US Securities and Exchange
Commission (SEC)”, Accounting in Europe, vol. 4, no. 2, 2007, pp. 123-
139.
[12] C.G. Bonaci, D. Matis, and J. Strouhal, “Crisis of Fair Value
Measurement? Some Defense of the Best of All Bad Measurement
Bases”, WSEAS Transactions on Business and Economics, vol. 7, no. 2,
2010, pp. 114-125.
[13] L. Evans, and C. Nobles, “Harmonization relating to auditor
independence: The Eighth Directive, the UK and Germany”, European
Accounting Review, vol. 7, no. 3, 1998, pp. 493-516.
[14] S. Fekete, Cercetare conceptuală si empirică privind raportările
financiare din România si Ungaria; Convergentă si conformitate cu
IFRS, Casa Cărtii de Stiintă, Cluj Napoca, 2009.
[15] J. Strouhal, C.G. Bonaci, and E.A. Matis, “Corporate Governance
Lesson Taught by the Financial Crisis: A Research Note”, International
Journal of Mathematical Models and Methods in Applied Sciences, vol.
5, no. 3, 2011, pp. 688-695.
[16] D. Haskin, and T. Haskin, “Hierarchy of GAAP vs. IFRS – The Case of
Bankruptcy Accounting”, International Business & Economics Research
Journal, vol. 11, no. 4, 2012, pp. 369-374.
[17] J. Strouhal, L. Müllerová, Z. Cardová, and M. Paseková, “Testing the
Compatibility of Czech Reporting from the SMEs Perspective”, WSEAS
Transactions on Business and Economics, vol. 6, no. 12, 2009, pp. 620-
629.
[18] K. Schipper, “The introduction of international accounting standards in
Europe, implications for international convergence”, European
Accounting Review, vol. 14, no. 1, 2005, pp. 101-126.
[19] J. Strouhal, C.G. Bonaci, and D. Matis, “Fair Value Accounting: An
Historical Perspective”, International Advances in Economic Research,
vol. 15, no. 4, 2009, pp. 490-491.
[20] A. Tarca, “International convergence of accounting practices: Choosing
between IAS and US GAAP”, Journal of International Financial
Management and Accounting, vol. 15, no. 1, 2004, pp. 60-91.
[21] P.E. Hopkins, C.A. Botosan, M.T. Bradshaw, et al. “Response to the
SEC Release, ‘Acceptance from Foreign Private Issuers of Financial
Statements Prepared in Accordance with International Financial
Reporting Standards Without Reconciliation to U. S. GAAP File No. S7-
13-07’”, Accounting Horizons, vol. 22, no. 2, 2008, pp. 223-240.
[22] R.R. Yallapragada, W.C. Roe, and A.G. Toma, “The prospects of
replacing GAAP with IFRS In the United State”, International Business
& Economics Research Journal, vol. 12, no. 1, 2013, pp. 25-30.
[23] D.S. Ruder, C.T. Canfield, and H.T. Hollister, “Creation of Worldwide
Accounting Standards: Convergence & Independence”, Northwestern
Journal of International Law and Business, Symposium on the
Convergence of Accounting Standards, 2005, pp. 513-588.
[24] W.W. Poon, SEC Work Plan for the Consideration of Incorporating
IFRS into the U. S. Financial Reporting System, Proceedings of the
Northeast Business & Economics Association, 2010, pp. 101-104.
[25] H.D. Grove, and J.D. Bazley, “Disclosure strategies for harmonization
of international accounting standards”, The International Journal of
Accounting, vol. 28, no. 2, 1993, pp. 116–128.
[26] D.L. Street, and K.A. Shaughnessy, “The quest for international
accounting harmonization: A review of the standard setting agendas of
the IASC, US, UK, Canada, and Australia, 1973–1997”, The
International Journal of Accounting, vol. 33, no. 2, 1998, pp. 179–209.
[27] C.W. Nobes, “Compliance by US Corporations with IASC Standards”,
British Accounting Review, no. 22, 1990, pp. 41–49.
[28] C.G. Bonaci, R.V. Mustata, and D. Matis, “Accounting standard setting
in the international arena: update on the convergence project”, Analele
Universităţii din Oradea, TOM XXI, 2012, pp. 866 – 872.
[29] Grant Thornton, Comparison between US GAAP and International
Financial Reporting Standars, 3rd edition, 2012.
[30] KPMG (October 2012), IFRS compared to US GAAP: An overview,
2012.
[31] PwC (October 2012), IFRS and US GAAP: similarities and differences,
2012.
[32] C. Ohlgar, and E. Steve, „IFRS Yes, No, Maybe: What US Companies
Need to Know”, Financial Executive, vol. 27, no. 8, 2011, pp. 39-43.</p>
@article{"International Journal of Business, Human and Social Sciences:64106", author = "Sorana M. Manoiu and Razvan V. Mustata and Jiří Strouhal and Carmen G. Bonaci and Dumitru Matis and Jiřina Bokšová", title = "Perspectives of Financial Reporting Harmonization", abstract = "In the current context of globalization, accountability has become a key subject of real interest for both, national and international business areas, due to the need for comparability and transparency of the economic situation, so we can speak about the harmonization and convergence of international accounting. The paper presents a qualitative research through content analysis of several reports concerning the roadmap for convergence. First, we develop a conceptual framework for the evolution of standards’ convergence and further we discuss the degree of standards harmonization and convergence between US GAAP and IAS/IFRS as to October 2012. We find that most topics did not follow the expected progress. Furthermore there are still some differences in the long-term project that are in process to be completed and other that were reassessed as a lower priority project.
", keywords = "Convergence, harmonization, FASB, IASB, IFRS, US GAAP.", volume = "7", number = "7", pages = "2186-6", }
