INTERNALIZATION OF ACCOUNTING STANDARDS

The International accounting literature pays much attention to the clustering of national accounting systems of various countries based on similar financial reporting characteristics. This study arges that the existing models that cluster countries are substantially incomplete and misleading due to the recent convergence efforts that have taken place. The study identifies the factor that may be causing differences in both the de jure and de factor aspects of comparability in financial reporting across countries in the post-convergence period. The study arges that national and International regulator need to work towards reducing the differences across countries to achieve the objectives of accounting convergence.