Why International Financial Reporting Standards Are Accepted in Developing Countries

Document Type : Review Paper

Authors

1 d

2 a

Abstract

Today the increasing efforts for harmonizing accounting have become a prominent and controversial theme in many countries at the international level. The tendency towards international standards for increasing the comparability of financial statement and for drawing the attraction of foreign investors is advancing considerably. Among countries, those with unsuitable infrastructures are on the top of the list of acceptance and implementation of international financial reporting standards. This study has utilized both institutional and economic theories and is trying to elucidate the movement of the developing countries towards the acceptance and implementation of international reporting standards. From the perspective of institutional theory, internationalization of accounting is a tool for acquiring the legitimacy and for responding to the pressure imposed by international and domestic institutions. From another point of view, economic theory suggests that international reporting standards are precious commodities.

Keywords

Main Subjects

References

DiMaggio, P. J. , and Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48 (2) , 147-160.
International Financial Reporting Standards (IFRS). (2008). An AICPA Backgrounder. Available at: http: //www. ifrs. com/updates/aicpa/ Backgrounder_pdf. html.
Judge, W, Li, S. , and Pinsker, R. (2010). National Adoption of International Accounting Standards: An Institutional Perspective. Corporate Governance: An International Review, 18 (3) , 161-174.
Koning, M. , Mertens, G. , & Roosenboom, P. (2018). Drivers of institutional change around the world: The case of IFRS. Journal of International Business Studies, 49 (3) , 249-271.
Kossentini, Anas, and H. Othman. (2014). A study of the institutional and economic determinants of IFRS adoption in emerging economies. Working paper, University of Tunis, Tunis.
 Mir, M. Z. , and Rahaman, A. S. (2005). The adoption of international accounting standards in Bangladesh: An exploration of rationale and process. Accounting, Auditing & Accountability Journal, 18 (6) , 816 - 841.
Mollateyefh, S. (2015). The new mission of the International Accounting Standards Board. Quarterly of Auditor, 76, 94-98. (in Persian)
Paknezhad, M. (2017). Analysis of Affecting Factors on IFRS Adoption: Case Study in Iran. Management and Organizational Studies, 4 (1) , 74-81.
Perera, M. H. B. (1989). Towards a framework to analyze the impact of culture on accounting. The International Journal of Accounting, 24 (1) , 42-56.
Phan, D. H. T. and Mascitell, B. (2014). Potential Adoption oF International Financial Reporting Standard (IFRS) in Vietnam: From Legitimacy To Isomorphism. in Proceedings of The 26th Asian-Pacific Conference on International Accounting Issues, United States, 26 - 29 October, 1-14.
Poudel, g. , Hellman, A. , and Perera, H. (2014). The adoption of International Financial Reporting Standards in a non-colonized developing country: The case of Nepal. Advances in Accounting, incorporating Advances in International Accounting, 30, 209-216.
Pricope, C. F. (2016). The role of institutional pressures in developing countries. Implications for IFRS". Theoretical and Applied Economics , 2, 27-40.
Rahmani, A. and Sh. Alipour. (2009). Barriers to adoption of international accounting standards in Iran. Empirical Study in Financial Accounting Quarterly, 7 (27) , 83-107. (in Persian)
Ramanna, K. , and Sletten, E. (2009). Why do countries adopt International Financial Reporting Standards?. Harvard Business School, Working Paper.
Safarzadeh, M. H. (2015). A Practical Guide to IASs 1&7: Prospection of Financial Statements, Tehran: Audit Organization. (in Persian)
Taylor, M. E. , Evans, T. G. and Joy, A. C. (1986). The impact of IASC accounting standards on comparability and consistency of international reporting practices. International Journal of Accounting Education and Research, 22 (1) , 1-9.
Zarei, B. and A. Zarei. (2008). Theoretical paradigms explaining the formation of inter-organizational relationship. Journal of Management Knowledge, 20 (1) , 45-62. (in Persian)
Zeghal, D. , and Mhedhbi, K. , (2006). An analysis of the factors affecting the adoption of international accounting standards by developing countries. The International Journal of Accounting, 41 (4) , 373-386.
 
Journal of Accounting and Social Interests
Volume 8, Issue 3 - Serial Number 30
December 2018
Pages 87-99

Files

History

  • Receive Date: 21 July 2017
  • Revise Date: 16 July 2018
  • Accept Date: 01 November 2017

Share

How to cite

Statistics