On the global acceptance of IAS/IFRS accounting standards: The logic and implications of the principles-based system

Salvador Carmona and Marco Trombetta

Journal of Accounting and Public Policy, 2008, vol. 27, issue 6, pages 455-461

Abstract: The widespread acceptance of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) makes it timely to examine their technical determinants as well as their implications for the accounting profession and the process of accounting harmonization. In this respect, we suggest that the principles-based approach to the standards and its inner flexibility enables the application of IAS/IFRS to countries with diverse accounting traditions and varying institutional conditions. Furthermore, the principles-based approach involves major changes in the expertise held by accountants and, hence, in their educational background, training programs, and in the organizational and business models of accounting firms. Finally, we submit that the standards set by the IAS/IFRS constitute a step forward in the process of accounting harmonization, although there is still far to go in the comparability of accounting measures across countries and regions.

Keywords: Globalization; Accounting; harmonization; Convergence; Principles-based; standards; Rules-based; standards (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:eee:jappol:v:27:y:2008:i:6:p:455-461

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