Accounting Research: Tools and Strategies, 7th Edition

CHAPTER 5

The Environment of International Research

LEARNING OBJECTIVES

After completing this chapter, you should understand:

• The international accounting environment.
• Global and domestic adoption of International Financial Reporting Standards.
• The International Accounting Standards Board and its structure.
• The standard-setting process, including due process and the Framework.
• How to utilize the electronic International Financial Reporting Standards to conduct research including the Standards hierarchy.

INTERNATIONAL ACCOUNTING ENVIRONMENT

International competition has forced many firms to look to new markets and investors to finance the expansion or modernization needed to remain competitive in world markets. Increasingly internationalized capital markets result in a need for internationally comparable financial statements and accounting standards. Accounting principles and reporting practices are the business world's communication and should move freely across national boundaries.

RESEARCH TIPS

The AICPA Web site (www.ifrs.com) provides an abundance of IFRS information.

Different accounting principles grew out of the divergent economic and social environments of various nations and regions. Differences among national accounting and auditing standards become more disconcerting when trade barriers between nations were reduced due to international cooperation developments (for example, the North American Free Trade Agreement).

Efforts have increased during the past decade ...