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The Complex Equilibrium Paths towards International Financial Reporting Standards (IFRS) and the Anglo-American Model: The Case of Japan

Author

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  • Noriyuki Tsunogaya

    (Department of International Economy and Business, Kyushu University, Japan)

  • Parmod Chand

    (Department of Accounting and Corporate Governance, Macquarie University, Australia)

Abstract

We adopt the accounting ecology framework of Gernon and Wallace (1995) to investigate the unique Japanese process of accounting reforms and convergence. The uniqueness of the Japanese accounting framework is primarily the result of the integration of the Japanese traditional accounting system and its surrounding infrastructures with International Financial Reporting Standards (IFRS), the Anglo-American model, and the liberal market economies (LMEs). The objective of this study is to demonstrate that accounting as the language of business is deeply embedded in the historical, legal, business and economic environments of each country and that these contextual factors cannot be ignored in the process of significant accounting reforms, including accounting convergence. The paper provides evidence that even in the process of global accounting convergence countries are not achieving de facto convergence because optimal mechanisms of the accounting system and its surrounding infrastructures are contextual and embedded in the accounting ecology of each country.

Suggested Citation

  • Noriyuki Tsunogaya & Parmod Chand, 2012. "The Complex Equilibrium Paths towards International Financial Reporting Standards (IFRS) and the Anglo-American Model: The Case of Japan," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 2, pages 117-137, December.
    • Handle: RePEc:kob:tjrevi:dec2012:v:2:p:117-137
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    References listed on IDEAS

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    More about this item

    Keywords

    Global Convergence of Financial Reporting; International Financial Reporting Standards (IFRS); Japanese Accounting System;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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