Economics at your fingertips  

Perceptions regarding the implementation of International Financial Reporting Standards in Portugal and Brazil

Ana Paula Silva, Alexandra Fontes and Adelaide Martins

Journal of International Accounting, Auditing and Taxation, 2021, vol. 44, issue C

Abstract: This study responds to calls for further research on how the institutional context of code law rooted countries impeded or supported the adoption of International Financial Reporting Standards (IFRS). We contribute to the debate on whether the pre-IFRS Anglo-Saxon versus Continental European model persists under IFRS. The experiences of Brazil and Portugal with respect to IFRS are underexamined and allow a comparison of an advanced economy and an emerging market, thereby offering further research on this topic. This study also helps overcome the lack of research on IFRS implementation by unlisted firms. Findings reveal that as many as seven or eight years after formally adopting IFRS, full de facto international accounting convergence in Portugal and Brazil is not yet achieved. Evidence from both countries show a coercive isomorphism being exerted mainly by informal market forces rather than by formal supervisory mechanisms. This observation together with enduring professional resistance and a low level of professional development, most noticeably in Brazil, is consistent with the possibility of decoupling or loose coupling. The cultural traits that influenced the continental model adopted prior to IFRS are perpetuated in both countries, thereby suggesting that culture poses a major obstacle to the complete adoption of IFRS.

Keywords: IFRS; Accounting convergence; Perceptions; Portugal; Brazil; Institutional theory (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.intaccaudtax.2021.100416

Access Statistics for this article

Journal of International Accounting, Auditing and Taxation is currently edited by R. Larson

More articles in Journal of International Accounting, Auditing and Taxation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-01-04
Handle: RePEc:eee:jiaata:v:44:y:2021:i:c:s1061951821000410