Is a Full International Accounting Convergence Desirable?

Je žádoucí úplná konvergence účetního výkaznictví?

David Procházka

Český finanční a účetní časopis, 2015, vol. 2015, issue 3, 7-23

Abstract: Referring to the Convergence Project of IASB and FASB, the paper focuses on an up-to-date issue, whether it is desirable to endeavour for a single global system of financial reporting standards. Albeit a full convergence is achievable both theoretically and practically, economic theory, analytical modelling and empirical accounting studies show that potential benefits of a single global system are lower than its costs. The main restriction on further convergence stems from the variety of informational needs by users of financial statements. To meet this changing demand, information strategies of preparers have to be flexible. One-size-fits-all approach to standard setting undermines the potential of standard setters to comply with the requirements both from users and companies. The quality of financial reporting standards can be only assured if standard setters are exposed to a competition.

Keywords: Accounting convergence; IFRS; US GAAP; Monopoly; Competition; Účetní konvergence; US GAAP; Monopol; Konkurence (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.18267/j.cfuc.447

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