Judgments of professional accountants in Fiji

implications for convergence of accounting standards

Parmod Chand, Chris Patel, Arvind Patel

Research output: Contribution to conferencePaper

Abstract

The implicit assumption in convergence of accounting standards is that greater comparability will result in financial reports across countries if they adopt the International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). This study questions the validity of this assumption of comparability in financial reports, particularly where the countries differ significantly in terms of both the size and structure of the underlying economies, and the capabilities of the accounting institutes and regulatory bodies. Our primary objective in this study is to test whether there are differences in judgements of the big 4 and non-big 4 professional accountants in Fiji when applying the selected IASs/IFRSs. This research is important because significant within-country differences in judgements of professional accountants will have serious implications for convergence of accounting standards. We find strong support for differences in judgements of big 4 and non-big 4 professional accountants when provided with ‘new’ accounting standards that require complex judgments. An important implication of this study is that if professional accountants in emerging economies are not adequately trained and experienced in applying IFRSs, then standard setters of these countries may consider mandating a set of accounting standards with a greater focus on rules as opposed to principles that require the exercise of professional judgements.
Original languageEnglish
Number of pages16
Publication statusPublished - 2005
EventEmerging issues in accounting, business and technologies (2005) - Niagra Falls, USA
Duration: 4 Aug 20056 Aug 2005

Conference

ConferenceEmerging issues in accounting, business and technologies (2005)
CityNiagra Falls, USA
Period4/08/056/08/05

Keywords

  • convergence
  • accounting standards
  • judgements
  • differences

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    Chand, P., Patel, C., & Patel, A. (2005). Judgments of professional accountants in Fiji: implications for convergence of accounting standards. Paper presented at Emerging issues in accounting, business and technologies (2005), Niagra Falls, USA, .