<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The article examines the impact of updated IFRS on the current convergence of national accounting and reporting rules in Japan, the USA, China, France, Germany, the UK, and Ukraine based on a theoretical analysis of 59 rules and concepts of IFRS. The new differences between the updated IFRS and GAAP of these countries based on the comparative analysis were revealed. The results of the study show currently Ukraine (51%) and the United Kingdom (47%) are the most convergent with IFRS, although their degree of convergence has decreased significantly after recent innovations in IFRS; a new question arises for the UK after Brexit regarding the further application of IFRS; countries with strong national accounting traditions continue to avoid rapid changes in their GAAP; 4) the increase in the convergence of GAAP Japan with IFRS will not be possible shortly. The conclusion states that the main obstacle in the convergent process GAAP and IFRS is that: 1) IFRS are changing based on GAAP USA, rather than vice versa; 2) IFRS do not belong to the “stable to change standards”, so users have a certain distrust of the declared high quality of IFRS. The study results add significant novelty to scientific and practical research on the impact of frequent changes in IFRS both locally and internationally.</p>
</abstract>

The article examines the impact of updated IFRS on the current convergence of national accounting and reporting rules in Japan, the USA, China, France, Germany, the UK, and Ukraine based on a theoretical analysis of 59 rules and concepts of IFRS. The new differences between the updated IFRS and GAAP of these countries based on the comparative analysis were revealed. The results of the study show currently Ukraine (51%) and the United Kingdom (47%) are the most convergent with IFRS, although their degree of convergence has decreased significantly after recent innovations in IFRS; a new question arises for the UK after Brexit regarding the further application of IFRS; countries with strong national accounting traditions continue to avoid rapid changes in their GAAP; 4) the increase in the convergence of GAAP Japan with IFRS will not be possible shortly. The conclusion states that the main obstacle in the convergent process GAAP and IFRS is that: 1) IFRS are changing based on GAAP USA, rather than vice versa; 2) IFRS do not belong to the “stable to change standards”, so users have a certain distrust of the declared high quality of IFRS. The study results add significant novelty to scientific and practical research on the impact of frequent changes in IFRS both locally and internationally.

Analysis of Impact of Changes in IFRSs on Convergence of Accounting Systems in World

Department of Accounting and Taxation, National Academy of Statistics

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution 4.0 International License.

The article examines the impact of updated IFRS on the current convergence of national accounting and reporting rules in Japan, the USA, China, France,...

Analysis of Impact of Changes in IFRSs on Convergence of Accounting Systems in World

Published Online: Jul 23, 2021

Page range: 75 - 103

Received: Feb 01, 2021

Accepted: May 01, 2021

DOI: https://doi.org/10.2478/sues-2021-0015

Keywords
IFRS, GAAP, US, financial reporting, national accounting rules, comparative analysis, EU, standards

© 2021 Lyudmyla Shkulipa, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Analysis of Impact of Changes in IFRSs on Convergence of Accounting Systems in World

Published Online: Jul 23, 2021

Page range: 75 - 103

Received: Feb 01, 2021

Accepted: May 01, 2021

DOI: https://doi.org/10.2478/sues-2021-0015

KeywordsIFRS, GAAP, US, financial reporting, national accounting rules, comparative analysis, EU, standards

© 2021 Lyudmyla Shkulipa, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
IFRS, GAAP, US, financial reporting, national accounting rules, comparative analysis, EU, standards