IFRS and the Accounting Consensus

Posted: 5 May 2010

See all articles by Shyam Sunder

Shyam Sunder

Yale University - School of Management; Yale University - Cowles Foundation

Multiple version iconThere are 2 versions of this paper

Date Written: August 2008

Abstract

A broad consensus in accounting favors principles over rules to guide creation of a uniform high-quality set of standards for use everywhere, and granting monopoly power to a single body for this purpose. If implemented into policy, this consensus will discourage discovery of and evolution toward better methods of financial reporting, make it difficult to conduct comparative studies of the consequences of using alternative methods of accounting, promote substitution of analysis and thinking by rote learning in accounting classes, help discourage talented youth from collegiate programs in accounting, and probably endanger the place of accounting discipline in university curricula. Because the presumed benefits in the form of increased comparability of financial reports internationally or stateside are unlikely to be realized, the wisdom of undertaking these burdens remains questionable. The paper calls for a re-examination of the accounting consensus.

Keywords: accounting education, accounting standards, IFRS, uniformity

JEL Classification: M41, M44

Suggested Citation

Sunder, Shyam, IFRS and the Accounting Consensus (August 2008). Accounting Horizons, Vol. 23, No. 1, 2009. Available at SSRN: https://ssrn.com/abstract=1595646

Shyam Sunder (Contact Author)

Yale University - School of Management ( email )

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203-432-6160 (Phone)

HOME PAGE: http://www.som.yale.edu/faculty/sunder/

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

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