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Commentary: An International Comparison and Evaluation of Financial Accounting Concepts Statements *
Author(s) -
SCOTT WILLIAM R.
Publication year - 2002
Publication title -
canadian accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1499-8653
DOI - 10.1506/uf1g-tud8-7byt-219t
Subject(s) - accounting , scope (computer science) , normative , convergence (economics) , accounting standard , business , agency (philosophy) , financial accounting , fund accounting , positive accounting , accounting information system , economics , political science , computer science , sociology , law , social science , programming language , economic growth
Standard setters in several jurisdictions have adopted statements of financial accounting concepts. Given that concepts statements influence accounting standards, similarities and differences of concepts across jurisdictions will affect the ability of the International Accounting Standards Board (IASB) and other accounting bodies to secure standards convergence. This paper analyzes the concepts statements of Australia, Canada, New Zealand, the United Kingdom, the United States, and the IASB. Although these statements seem similar at a “broad brush” level, a closer look reveals substantial differences. The main purpose of this paper is to evaluate these differences and the extent to which they may impair standards convergence. The paper also proposes broadening the scope of the concepts structure to include normative agency‐theoretic considerations, which would bring the legitimate interests of management into the concepts structure, with the potential to move some of the trade‐offs necessary to secure managers' acceptance of accounting standards into the structure itself.