Faculty Scholarship 1994 - Present
Impact of the American Accounting Scandals on the Harmonization of the Acctg Standards at the Global Level
The purpose of this study is to examine the impact of the recent accounting scandals in the U.S. market on the harmonization efforts at the global level. Prior to the scandals the Financial Accounting Standards Board (FASB), the primary standard-setting body in the U.S., was in a very strong position to influence the International Accounting Standards Committee (IASC) in rendering global accounting standards that were tilted more towards the American standards than European or other standards. With the recent scandals this influence is undoubtedly diminished. Our study examines the trends reflected in the international community and notes some of the forces that have influenced the choice of the alternatives in financial reporting standards. We also relect on the possible course of action the FASB and the IASC will take as they work towards harmonizing U.S. and internation standards by 2005.