The International Politics of IFRS Harmonization
Harvard University - Harvard Business School
August 27, 2012
Accounting, Economics and Law 3, No. 2 (April 2013)
Harvard Business School Accounting & Management Unit Working Paper No. 11-132
The globalization of accounting standards as seen through the proliferation of IFRS worldwide is one of the most important developments in corporate governance over the last decade. I offer an analysis of some international political dynamics of countries’ IFRS harmonization decisions. The analysis is based on field studies in three jurisdictions: Canada, China, and India. Across these jurisdictions, I first describe unique elements of domestic political economies that are shaping IFRS policies. Then, I inductively isolate two principal dimensions that can be used to characterize the jurisdictions’ IFRS responses: proximity to existing political powers at the IASB; and own potential political power at the IASB. Based on how countries are classified along these dimensions, I offer predictions, ceteris paribus, on countries’ IFRS harmonization strategies. The analysis and framework in this paper can help broaden the understanding of accounting’s globalization.
Number of Pages in PDF File: 47
Keywords: accounting standards, globalization, IASB, IFRS, politics
JEL Classification: D72, F53, G15, K33, M16, M41Accepted Paper Series
Date posted: July 2, 2011 ; Last revised: May 8, 2013
© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.250 seconds