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Accounting Standard Setting In The International Arena: Update On The Convergence Project

Author

Listed:
  • Bonaci Carmen Giorgiana

    (Babes-Bolyai University, Faculty of Economics and Business Administration)

  • Mustata Razvan V.

    (Babes-Bolyai University, Faculty of Economics and Business Administration)

  • Matis Dumitru

    (Babes-Bolyai University, Faculty of Economics and Business Administration)

Abstract

Our paper contributes to the literature on international accounting by focusing on the standard setting process. As documented by research literature, accounting regulation can enhance corporate governance (Melis and Carta, 2010), corporate reporting being expected to reduce information asymmetry. Based on accounting research and trade literature we first synthesize recent evolutions in the international accounting arena. We therefore position our study within current realities significantly marked by uncertainty in relation to the world wide globalization process. The objective of our paper is to perform an analysis that would help assess further developments of the convergence project. This is done by looking at the current status of the projects being developed under the IASB â€"FASB collaboration, as well as by developing a comparison between IFRS and US GAAP. The employed research methodology relies on analyzing data provided through the IASB and the FASBâ€(tm)s websites, as well as other official documents being issued by the two Boards. The assessment of the projects was done by reviewing exposure documents and monitoring the Boardsâ€(tm) deliberations, while the developed comparison requires accounting regulations content analysis. Concluding upon the Boardsâ€(tm) ongoing projects, we might identify areas in which convergence seems to be quite close (such as revenue recognition and leasing), but also areas in which convergence becomes even more challenging (such as financial instruments or the particular case of offsetting). Similar to other studies being developed within accounting research and trade literature (SEC 2011: 8) we may conclude that, generally, US GAAP present more detailed, specific requirements than IFRS.

Suggested Citation

  • Bonaci Carmen Giorgiana & Mustata Razvan V. & Matis Dumitru, 2012. "Accounting Standard Setting In The International Arena: Update On The Convergence Project," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 866-872, July.
    • Handle: RePEc:ora:journl:v:1:y:2012:i:1:p:866-872
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    References listed on IDEAS

    as
    1. Joshua Ronen, 2008. "To Fair Value or Not to Fair Value: A Broader Perspective," Abacus, Accounting Foundation, University of Sydney, vol. 44(2), pages 181-208, June.
    2. Andrea Melis & Silvia Carta, 2010. "Does accounting regulation enhance corporate governance? Evidence from the disclosure of share-based remuneration," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(4), pages 435-446, November.
    3. Geoffrey Whittington, 2008. "Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View," Abacus, Accounting Foundation, University of Sydney, vol. 44(2), pages 139-168, June.
    4. Erickson, Devon & Esplin, Adam & Maines, Laureen A., 2009. "One world - One accounting," Business Horizons, Elsevier, vol. 52(6), pages 531-537, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    International Accounting Standards Board; Financial Accounting Standards Board; corporate reporting; IFRS; US GAAP;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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