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An International Meeting of American Accounting
Association
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A Diagnostic Model for Assessing Convergence of Statements of Financial Accounting Standards (SFASs)and International Financial Reporting Standards (IFRSs) |
Roger Hussey
University of Windsor
Audra Ong
University of Windsor
Abstract: Discussions between the FASB and IASB on convergence of accounting standards are progressing and this study employs a diagnostic model to assess their likely outcome. Several reasons are identified and the paper concludes that full convergence will not be achieved. The issue of whether a principles-based or a rules-based approach should be adopted is not resolved, despite the accommodating noises being made by various individuals and groups. The IASB has no legal authority but is answerable to its constituent nations and may not be able to deliver what has been promised. The assumption in the USA is that financial information is primarily for investors to make decisions. Although the IASB appears to be in accord, other countries retain the remnant of an “accountability” or “stewardship” model and this is likely to emerge as a contentious issue. Keywords: Accounting convergence, Taiwan accounting standards, International accounting harmonization, US GAAP, repertory grid.