Abstract
Despite efforts to increase convergence and comparability in financial reporting across national borders and regulatory boundaries, inconsistencies in the interpretation of accounting standards persist. The current study examines whether accounting decision-making (consolidation of an investee) is influenced by accountants’ work location (United States (US) vs. India) and personality (core self-evaluations). We expect these relationships to differ based on whether the accounting term “control” is interpreted using the International Accounting Standards Board’s principles-based approach versus the US Financial Accounting Standards Board’s rules-based perspective. Drawing on a sample of 180 English-speaking accountants based in the US and India, results of moderation analyses suggest that accountants’ decision to consolidate is significantly influenced by work location and core self-evaluations when the term “control” is interpreted using principles-based terminology, but not when it is interpreted using rules-based terminology. Practical implications of such inconsistencies for the continued convergence and comparability of accounting standards and decisions as well as directions for future research are discussed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Journal of International Accounting, Auditing and Taxation
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.