Abstract
AbstractBased on a literature review, the paper traces the history of the International Accounting normalization, and presents an overview of the harmonization process across different regions of the world.In a first part we present the circumstances that led to the genesis of the International Accounting Standards Committee (IASC) in 1973, by returning to the evolution of its notoriety, and to the production of its first international accounting standards (IAS). After discussing the replacement of the IASC in 2001 by the International Accounting Standards Committee Foundation (IASCF) and the International Accounting standards Board (IASB), we give details on how the international standards were henceforth called International Financial Reporting Standards (IFRS), due to their new dominating financial aspect.In the second part of the paper, we discuss the existing differences between developed and developing countries regarding the international accounting harmonization process. After discussing the limits and the advantages of the international accounting harmonization, we raise the issue of financial security in relation to the process of international accounting harmonization.
Highlights
Today, the phenomenon of globalization affects almost all areas, and creates a controversy over its effects on the world
After having gradually built a set of standards and developed cooperation with the various players in the financial markets, including accountants organizations and national market regulators, the IASC had in 2001 a change in its legal and operational organization, and became a private foundation based in the United States in the State of Delaware, the International Accounting Standards Committee Foundation (IASCF) with its subsidiary based in London, the International Accounting standards Board (IASB)
The mission f development and adoption of international accounting standards is provided by the IASCF, which entrusts the technical mission to the Executive Board, the IASB
Summary
The phenomenon of globalization affects almost all areas, and creates a controversy over its effects on the world. One of the potential virtues of financial globalization is that it connects national economic actors and foreign economic actors, resulting in a beneficial process of exchange of know-how [1]. This phenomenon of financial globalization is often used to explain various phenomena such as crises in emerging economies, tax avoidance or impoverishment of some countries [1]. When the cost of telecommunications decreases, the information exchange is stimulated, and the mobility of financial capital increases [1] This is the case of the international accounting harmonization. After many years of research and endless reform efforts, the international accounting standards have emerged
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