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Measurement Of Need For Harmonization Between National Accounting Standards And International Financial Reporting Standards

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  • Mustata, Razvan V.
  • Matis, Dumitru

Abstract

This study analyzes the quantification methods of the harmonization degree between the national accounting settlements and the international accounting standards. Starting from the presentation of the main methods used for this purpose such as - Euclidean distances, Jaccard’s coefficients, Spearman’s coefficients and other nonparametric methods for rank correlation analysis – we suggest a method of quantification for the need of harmonization between the national accounting standards and the financial reporting international ones. Beyond the certainty of a quantification model foe this need, we analyze in the present study the situation of 33 states selected through reporting at a global level. The main achievement of this study is represented by the concept of pre-formal harmonization and the method to quantify it, strongly connected with the general accepted concepts of formal and material harmonization of accounting.

Suggested Citation

  • Mustata, Razvan V. & Matis, Dumitru, 2007. "Measurement Of Need For Harmonization Between National Accounting Standards And International Financial Reporting Standards," MPRA Paper 6183, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:6183
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    References listed on IDEAS

    as
    1. Emenyonu, Emmanuel N. & Gray, Sidney J., 1996. "International accounting harmonization and the major developed stock market countries: An empirical study," The International Journal of Accounting, Elsevier, vol. 31(3), pages 269-279.
    2. Alexandra Fontes & Lúcia Lima Rodrigues & Russell Craig, 2005. "Measuring convergence of National Accounting Standards with International Financial Reporting Standards," Accounting Forum, Taylor & Francis Journals, vol. 29(4), pages 415-436, December.
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    More about this item

    Keywords

    financial reporting standards; pre-formal harmonization; measurement of harmonization;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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