The Transnationalization of Financial Reporting Standards
33 Pages Posted: 24 Jun 2011
Date Written: June 1, 2010
This paper seeks to explain the transnationalization of financial reporting by corporations. Specifically it considers how the status of International Financial Reporting Standards - constructed and issued by a private organization: the International Accounting Standards Board (IASB) – changed from being highly marginal to almost global adoption. A range of explanations (rather than just one) for the transformation are examined and contrary (or rather disruptive) evidence, not just supportive, is considered. Having examined a variety of explanations, the paper then considers whether or not the now extensive transnationalisation of financial reporting can be regarded as evidence that the period of national or regional varieties of capitalism (or business systems) is ending.
Keywords: coaccounting, convergence, financial reporting standards, globalisation, International Accounting Standards Board, standardization
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