Convergence and harmonization of accounting standards in the South Pacific region

Over the last few years there has been a significant increase in the acceptance of International Financial Reporting Standards (IFRSs) which are issued by the International Accounting Standards Board (IASB). Although numerous countries are adopting IFRSs, the approaches used for convergence continue to differ significantly across countries. Using selected countries from the South Pacific region, this paper investigates the relationship between country-specific characteristics and the selection of the appropriate approach used for the adoption of IFRSs. The country-specific attributes that have been found to influence convergence are (1) the set of accounting standards that was prevailing in the country at the time when the selection was made, (2) the availability and experience of professional accountants, (3) the relevant education and professional training, (4) the presence of the Big 4 accounting firms and (5) the accounting regulatory framework. The results of this study suggest that complete comparability in financial reporting may be difficult to achieve across all countries even after adopting the IFRSs. These findings are important because they indicate that attention should be concentrated on theorizing and empirically testing the effects of the country-specific attributes on convergence efforts across various jurisdictions.