Skip to main content
padlock icon - secure page this page is secure

The persistence of international accounting differences as measured on transition to IFRS

Buy Article:

$53.00 + tax (Refund Policy)

The international accounting classification literature emphasises the importance of understanding how institutional factors shape accounting regulations and practices. With the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union and Australia in 2005, our empirical study examines whether three international accounting classification systems relating to equity financing, law and culture still had merit as measured on transition to IFRS and explore whether they are effective in grouping accounting systems. Using IFRS as the yardstick, we find statistically significant differences in the measurement of shareholders’ equity as between strong (Class A) versus weak (Class B) equity financing systems, common law versus code law systems and cultural systems based on ‘Anglo’, ‘Nordic’ and ‘More Developed Latin’ cultural groups. With regard to the measurement of net income, however, we find statistically significant differences only in respect of strong (Class A) versus weak (Class B) equity financing systems. Our findings demonstrate that traditional international accounting system differences still persisted at the time of IFRS adoption even after long periods of harmonisation and growing international accounting convergence.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Keywords: IFRS; accounting harmonisation; accounting systems; international accounting; international accounting classification

Document Type: Research Article

Affiliations: 1: Department of Accounting, Stockholm School of Economics, Stockholm, Sweden 2: Business School, University of Sydney, Sydney, NSW, Australia 3: School of Accounting, University of New South Wales, Sydney, NSW, Australia 4: Faculty of Business, Economics and Management Information Systems, University of Regensburg, Regensburg, Germany

Publication date: February 23, 2015

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more