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International Accounting Standard Adoption

1. Can you identify why a 'one-size fits all approach' may not be the best approach?

2. In thinking about your response, think about differences between countries, differing requirements of developing and developed economies, and the manner in which international standards are implemented and enforced, once developed?

Countries that are more wealthy develop their own accounting standards that are more costly. Less developed countries adopt accounting standards issued by the IASB.

Nature of domestic business ownership- Countries that rely on equity capital provide more disclosure than countries relying on debt capital.

Colonial history. Invasion- Accounting standards are imposed.

Cultural- affect the legal systems, tax systems.

Source of finance- World Bank require certain accounting methods.

Religion.

Accidents of history/ strength of accounting profession.