International Accounting Convergence and Divergence: Towards a Framework for Understanding De Jure Adoption of IFRS

0Citations
Citations of this article
25Readers
Mendeley users who have this article in their library.

This article is free to access.

Abstract

By bridging the two main approaches examining de jure adoption of IFRS, namely, convergence and divergence studies, we provide a framework that more fully captures the totality, dynamics, and complexity of voluntary adoption of IFRS by country. The framework offers an understanding of accounting regulators’ efforts to balance between pressure to adopt IFRS and national specific conditions that may conflict with IFRS requirements. The suggested framework depicts four propositions which are built on four institutional dimensions: the degree of IFRS diffusion, national accounting system compatibility with IFRS, country dependence on external financing, and accounting regulator’s international networking. These four propositions jointly predict national adoption level of IFRS, ranging from non-adoption to partial adoption, and to full adoption. The framework assumes that the current IFRS adoption status by country is not static and may change over time. The voluntary adoption of IFRS standards by country is understood as the result of tradeoffs among multiple factors. In doing so, the developed framework solves a theoretical dichotomy in IFRS studies: the tendency of using institutional isomorphism to examine convergence versus accounting classification to understand divergence.

References Powered by Scopus

Institutions and institutional work

2383Citations
N/AReaders
Get full text

Understanding radical organizational change: Bringing together the old and the new institutionalism

2099Citations
N/AReaders
Get full text

Incentives versus standards: Properties of accounting income in four East Asian countries

1179Citations
N/AReaders
Get full text

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Cite

CITATION STYLE

APA

Bengtsson, M., & Argento, D. (2023). International Accounting Convergence and Divergence: Towards a Framework for Understanding De Jure Adoption of IFRS. Accounting in Europe, 20(3), 370–392. https://doi.org/10.1080/17449480.2023.2237056

Readers' Seniority

Tooltip

PhD / Post grad / Masters / Doc 6

86%

Lecturer / Post doc 1

14%

Readers' Discipline

Tooltip

Business, Management and Accounting 5

63%

Economics, Econometrics and Finance 2

25%

Engineering 1

13%

Save time finding and organizing research with Mendeley

Sign up for free