Chand, Parmod and Patel, Chris and Day, Ronald
(2008)
Factors Causing Differences In The Financial
Reporting Practices In Selected South Pacific
Countries In The Post-Convergence Period.
Asian Academy of Management Journal (AAMJ), 13 (2).
pp. 1-19.
ISSN 1394-2603
Abstract
The international accounting literature pays much attention to the clustering of national
accounting systems of various countries based on similar financial reporting
characteristics. In this paper, we argue that the existing models that cluster countries are
substantially incomplete and misleading due to the recent convergence efforts that have
taken place. We identify the factors that may be causing differences in both the de jure
and de facto aspects of comparability in financial reporting across countries in the postconvergence period. Using four countries from the South Pacific region (Australia, New
Zealand, Papua New Guinea and Fiji), we identify three dominant factors that still act as
constraints in accounting convergence. These include: (1) the nature of business
ownership and the financial system, (2) culture, and (3) the level of accounting education
and the experience of professional accountants in each of the different countries. We
argue that national and international regulators need to work towards reducing these
remaining differences across countries to achieve the objectives of accounting
convergence.
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