• citations in SCIndeks: [4]
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:9
  • full-text downloads in 30 days:7


article: 8 from 10  
Back back to result list
2014, vol. 16, iss. 3, pp. 239-251
Inconsistent application of International Financial Reporting Standards
University of Kragujevac, Faculty of Economy
Keywords: financial reporting; International Financial Reporting Standards (IFRS); International Accounting Standards Board (IASB); inconsistent application
The transformation of the International Financial Reporting Standards (IFRS) into a single global language of financial reporting is well under way and followed by a problem of their inconsistent application from country to country, with negative consequences for the global comparability of financial statements. Starting from this, the main purpose of this paper is to give an overview of the main causes of the diversity of financial reporting practices between those countries declaring themselves to be the followers of the IFRS, as well as to identify the ways of overcoming this diversity. Applying the qualitative research methodology, it has been found that the flexibility of the IFRS provisions, which is inevitable in many cases, modifications in their incorporation into national regulatory frameworks and the diversity and unequal effectiveness of national mechanisms for their enforcement and the supervision of their implementation stand for the main causes of inconsistent accounting practices. In order to reduce the inconsistency, national financial reporting regulators should increase their engagement and coordination among themselves, and the International Accounting Standards Board should make additional efforts, which should primarily be focused on the global promotion of the fundamental basis of the IFRS.
*** (2008) 2008 IFRS survey: Where are we today?. Deloitte Development LLC, Deloitte
Abd-Elsalam, O.H., Weetman, P. (2003) Introducing International Accounting Standards to an emerging capital market: relative familiarity and language effect in Egypt. Journal of International Accounting, Auditing and Taxation, 12(1): 63-84
Alali, F., Cao, L. (2010) International financial reporting standards - credible and reliable? An overview. Advances in Accounting, 26(1): 79-86
Alfredson, K., Leo, K., Picker, R., Pacter, P., Radford, J., Wise, W. (2007) Applying International Financial Reporting Standards. Australia: John Wiley & Sons Australia, Ltd
Amiraslani, H., Iatridis, G.E., Pope, P.F. (2013) Accounting for asset impairment: a test for IFRS compliance across Europe. London, UK: Centre for Financial Analysis and Reporting Research, Cass Business School
Armstrong, C.S., Barth, M.E., Jagolinzer, A.D., Riedl, E.J. (2010) Market Reaction to the Adoption of IFRS in Europe. Accounting Review, 85(1): 31-61
Bogićević, J. (2013) Accounting implications of foreign currency transactions translation and hedging. Ekonomski horizonti, vol. 15, br. 2, str. 133-148
Cabrera, L. (2008) Widespread Acceptance of IFRS Continues. Is It Time for U. S. Companies to Prepare for the Transition?. The CPA Journal, 78, 3, 36-37
Deloitte global services limited (2014) IAS 27: Separate financial statements. Retrieved October 13, 2014, from http://
Doupnik, T., Perera, H. (2007) International accounting. New York, USA: McGraw-Hill, International edition
Doupnik, T.S., Richter, M. (2004) The Impact of Culture on the Interpretation of “In Context” Verbal Probability Expressions. Journal of International Accounting Research, 3(1): 1-20
Epstein, B.J. (2009) The Economic Effects of IFRS Adoption. CPA Journal, 79, 3, 26-31
Ernst,, Young (2012) Consistency in IFRS - no borders, one language: dream or reality?. UK: IFRS Outlook. EYGM Limited
Foundation, I. (2012) IFRSs as the Global Standards: Setting a Strategy for the Foundation's Second Decade. London, UK: IFRS Fondation
IFRS Foundation (2014) Jurisdiction profiles. Retrieved June 3, 2014, from Pages/Jurisdiction-profiles.aspx
Kvaal, E., Nobes, C. (2010) International differences in IFRS policy choice: A research note. Accounting and Business Research, 40(2): 173-187
Mcgee, R.W. (2006) Adopting and implementing international financial reporting standards in transition economies. in: Gregoriou G.N., Gaber M. [ed.] International accounting: Standards, regulations, and financial reporting, Oxford, UK: Elsevier, pp. 199-223
Nobes, C., Parker, R. (2010) Comparative International Accounting. Harlow, UK: Pearson Education Limited
Nobes, C. (2013) The continued survival of international differences under IFRS. Accounting and Business Research, 43(2): 83-111
Pacter, P. (2013) What Have IASB and FASB Convergence Efforts Achieved?. Journal of Accountancy, 215, 2, 50-59
Pacter, P. (2014) Global Accounting Standards - From Vision to Reality: Assessing the State of IFRS Adoption, Jurisdiction by Jurisdiction. CPA Journal, 84, 1, 6-10
PricewaterhouseCoopers (2007) International Financial Reporting Standards: The right move for US business: 10 Minutes on IFRS. USA, Delaware: PricewaterhouseCoopers LLP
–PricewaterhouseCoopers, =SLEPLJENA (2007) ViewPoint: Convergence of IFRS and US GAAP. London, UK: PricewaterhouseCoopers, PricewaterhouseCoopers (2010). IFRS adoption by country. Delaware, USA: PricewaterhouseCoopers LLP
Saudagaran, S.M. (2009) International Accounting: A User Perspective. Chicago, USA: CCH
Stevenson, K.M. (2008) The IASB: Some personal reflections. in: Godfrey J.M., Chalmers K. [ed.] Globalisation of accounting standards, Cheltenham, UK: Edward Edgar, pp. 34-45
Tokar, M. (2005) Convergence and the Implementation of a Single Set of Global Standards: The Real-life Challenge. Accounting in Europe, 2(1): 47-68
US Securities and exchange commission (2010) Commission statement in support of convergence and global accounting standards. Washington, USA, Release Nos. 33-9109; 34-61578, U.S. Securities and exchange commission
von Keitz, I. (2006) The Application of IFRS: Choices in Practice. UK: KMPG IFRG Limited
Whittington, G. (2008) Harmonisation or discord? The critical role of the IASB conceptual framework review. Journal of Accounting and Public Policy, 27(6): 495-502
Willemain, J. (2008) Corporate reporting: Trends and tensions in convergence. Deloitte
Zeff, S.A. (2007) Some obstacles to global financial reporting comparability and convergence at a high level of quality. British Accounting Review, 39(4): 290-302


article language: Serbian, English
document type: Review Paper
DOI: 10.5937/ekonhor1403239o
published in SCIndeks: 09/01/2015