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Is a Full International Accounting Convergence Desirable?


  • David Procházka


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.

Suggested Citation

  • David Procházka, 2015. "Is a Full International Accounting Convergence Desirable?," Český finanční a účetní časopis, University of Economics, Prague, vol. 2015(3), pages 7-23.
  • Handle: RePEc:prg:jnlcfu:v:2015:y:2015:i:3:id:447:p:7-23

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    References listed on IDEAS

    1. S.P. Kothari & Karthik Ramanna & Douglas J. Skinner, 2009. "Implications for GAAP from an Analysis of Positive Research in Accounting," Harvard Business School Working Papers 09-137, Harvard Business School, revised Sep 2010.
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    6. Ding, Yuan & Hope, Ole-Kristian & Jeanjean, Thomas & Stolowy, Herve, 2007. "Differences between domestic accounting standards and IAS: Measurement, determinants and implications," Journal of Accounting and Public Policy, Elsevier, vol. 26(1), pages 1-38.
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    8. Sunder, Shyam, 2002. "Regulatory competition among accounting standards within and across international boundaries," Journal of Accounting and Public Policy, Elsevier, vol. 21(3), pages 219-234.
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    12. Brandon Gipper & Brett J Lombardi & Douglas J Skinner, 2013. "The politics of accounting standard-setting: A review of empirical research," Australian Journal of Management, Australian School of Business, vol. 38(3), pages 523-551, December.
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    More about this item


    Accounting convergence; IFRS; US GAAP; Monopoly; Competition; Účetní konvergence; IFRS; US GAAP; Monopol; Konkurence;

    JEL classification:

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


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