Whilst a number of studies have examined the evolution of the accounting standard setting process across time and identified various factors affecting the development of International Financial Reporting Standards (IFRS), the literature on international accounting has proceeded without an examination of theoretical paradigms which may explain the convergence process. As accounting operates within a social and political sphere, the convergence process can be better understood by examining the framework in which this dialogue takes place. Neofunctionalism, a sociological theory used to explain European integration efforts since the inception of the Treaty of Paris in 1951, is used in this paper to analyse the current international convergence process in accounting and offer insights into prospects for convergence in the future. The paper demonstrates that the ongoing dialogue and agreement between various institutions in the convergence process, like European convergence, is incremental, as opposed to one based on sudden structural re-alignments.
|Title of host publication||Proceedings of the 5th Asia Pacific Interdisciplinary Research in Accounting Conference|
|Place of Publication||Auckland|
|Publisher||APIRA Organising Committee and Conference Secretariat|
|Number of pages||23|
|Publication status||Published - 2007|
|Event||Asia Pacific Interdisciplinary Research in Accounting Conference (5th : 2007) - Auckland|
Duration: 8 Jul 2007 → 10 Jul 2007
|Conference||Asia Pacific Interdisciplinary Research in Accounting Conference (5th : 2007)|
|Period||8/07/07 → 10/07/07|
- integration theory
- international accounting
Cummings, L., & Chand, P. (2007). A Neofunctionalist perspective on international accounting convergence: analysis and insights. In M. Milne (Ed.), Proceedings of the 5th Asia Pacific Interdisciplinary Research in Accounting Conference (pp. 1-23). Auckland: APIRA Organising Committee and Conference Secretariat.