Framework for Enhancing the Egyptian Accounting Standards Towards Convergence with International Financial Reporting Standards
DOI:
https://doi.org/10.56830/IJAMS07202409Keywords:
International accounting standard, convergence, Generally Accepted Accounting Principles, EgyptAbstract
The Generally Accepted Accounting Principles (GAAP) which are theoretically unique to each country, it provides standards for evaluating and comparing the financial position of companies. However, the International Accounting Standard (IAS), are developed to be used by all countries. The convergence of these national and international accounting standards is important for attracting foreign investors and potential domestic investors. Egypt has undergone serious steps towards convergence, such as the introduction of new standards or converging of old standards to be consistent with the international standards. A number of complex standards has been understood either by separating them into two or more standards or by adding supplements or guidelines to some of them. Alternatives of some of accounting standards are reduced to avoid differences in practices and manipulating profits. This research developed a framework towards convergence of Egyptian accounting standards and International accounting standard that include a number of viable points: started with determining the objective of the financial reports, determining the methods of applying the international standards, the importance of studying the cultural influence, developing accounting education, the need to develop professional organizations concerned with the profession of accounting and for implementing and follow-up of standards.
References
Abd-Elsalam, O., & Weetman, P. (2003). “Introducing International Accounting Standards to an emerging capital market: relative familiarity and language effect in Egypt. Journal of International Accounting, Auditing & Taxation 12, 63–84. DOI: https://doi.org/10.1016/S1061-9518(03)00002-8
Albu, C. N., Albu, N., & Alexander, D. (2014). When global accounting standards meet the local context—Insights from an emerging economy. Critical Perspectives on Accounting, 25(6), 489-510. DOI: https://doi.org/10.1016/j.cpa.2013.03.005
Dahawy, K., Merino, B. D., & Conover, T. L. (2002). The conflict between IAS disclosure requirements and the secretive culture in Egypt. Advances in international Accounting, 15, 203-228. DOI: https://doi.org/10.1016/S0897-3660(02)15024-0
Desoky, A. (2013). An Empirical Investigation of International Accounting Harmony – Evidence from Egypt, Jordan and GCC Countries. Journal of Accounting, Finance and Economics Vol. 3. No. 1., Pp. 77 – 101. DOI: https://doi.org/10.2139/ssrn.3950852
Ebaid, I. (2016). "International accounting standards and accounting quality in code law countries: The case of Egypt". Journal of Financial Regulation and Compliance, Vol. 24 Issue: 1, pp.41-59. DOI: https://doi.org/10.1108/JFRC-12-2011-0047
Ebrahim, A. (2014). IFRS compliance and audit quality in developing countries: The case of income tax accounting in Egypt. Journal of International Business Research, 13(2), 19.
Forst, A., & Salerno, D. F. (2016). Ten Years of Mandatory Use of IFRS in the European Union: A Status Report. Journal of Corporate Accounting & Finance, 27(5), 29-36. DOI: https://doi.org/10.1002/jcaf.22176
Ghio, A., & Verona, R. (2015). Accounting harmonization in the BRIC countries: A common path? In Accounting Forum (Vol. 39, No. 2, pp. 121-139). Elsevier. DOI: https://doi.org/10.1016/j.accfor.2015.02.001
Horton, J., Serafeim, G., & Serafeim, I. (2013). Does mandatory IFRS adoption improve the information environment? Contemporary accounting research, 30(1), 388-423. DOI: https://doi.org/10.1111/j.1911-3846.2012.01159.x
Lisa, W. (2016). "Managing the Transformation from US GAAP to IFRS", translated by Mohamed Arafa, Research and Development Committee of the Association of Accountants and Internal Auditors "2016 Hamithir Publishing.
Newman, E. M., & Ongay. (2016). “A Literature Review On The Impact Of IAS/IFRS And Regulations On Quality Of Financial Reporting” . Risk governance & control: financial markets & institutions / Volume 6, Issue 4. DOI: https://doi.org/10.22495/rcgv6i4art13
Nijam, H. M., & Jahfer, A. (2016). International financial reporting standards: a review of status of adoption and approaches for evaluation. International Letters of Social and Humanistic Sciences, 69, 69-78. DOI: https://doi.org/10.18052/www.scipress.com/ILSHS.69.69
Nurunnabi, M. (2014). The role of the Securities and Exchange Commission in a developing economy: Implications for IFRS. Advances in accounting, 30(2), 413-424. DOI: https://doi.org/10.1016/j.adiac.2014.09.018
Prince, M. G. (2008). "The role of environmental variables in developing the accounting dimensions affecting the attraction of foreign investment". a conference of global economic trends and global economic in a rapidly changing world.
Rao, A., & Warsame, M. (2015). Effect of IFRS on the emerging African capital markets. Journal of Applied Financial Research.
Rezaee, Z., Smith, L. M., & Szendi, J. Z. (2010). Convergence in accounting standards: Insights from academicians and practitioners. Advances in accounting, 26(1), 142-154. DOI: https://doi.org/10.1016/j.adiac.2010.01.001
Samaha, K., & Khlif, H. (2016). "Adoption of and compliance with IFRS in developing countries: A synthesis of theories and directions for future research". Journal of Accounting in Emerging Economies, Vol. 6 Issue: 1, pp.33-49. DOI: https://doi.org/10.1108/JAEE-02-2013-0011
Sami, M. A. (2016). The Role of Compliant Accounting Standards in the Face of Creative Accounting and Accounting Estimates - A Field Study. Journal of Accounting and Auditing.
Shawqi, A.-A. B.-H. (2004). "A proposal to reconcile Arab accounting practices", the Fourth Annual Scientific ConferenceReconciling the business environments of business organizations, the tool of Arab economic integration, in facing the challenges of globalization," 9-11 September .
Shil, N. C., Das, B., & Pramanik, A. K. (2009). Harmonization of accounting standards through internationalization. International Business Research, 2(2), 194. DOI: https://doi.org/10.5539/ibr.v2n2p194
Singhal, D. (2015). Convergence with IFRS: New Opportunities to Investors Global Journal of Contemporary Research in Accounting. Auditing and Business Ethics (GJCRA) An Online International Research Journal Vol: 1 Issue 2, (ISSN: 2311-3162).
Tay, J. S., & Parker, R. H. (1990). Measuring international harmonization and standardization. Abacus, 26(1), 71-88. DOI: https://doi.org/10.1111/j.1467-6281.1990.tb00233.x
Zeff, S. A. (2007). Some obstacles to global financial reporting comparability and convergence at a high level of quality. The British Accounting Review, 39(4), 290-302. DOI: https://doi.org/10.1016/j.bar.2007.08.001
Zeghal, D., & Mhedhbi, K. (2006). An analysis of the factors affecting the adoption of international accounting standards by developing countries. The International Journal of Accounting, 41(4), 373-386. DOI: https://doi.org/10.1016/j.intacc.2006.09.009
Zehri, F., & Chouaibi, J. (2013). Adoption determinants of the International Accounting Standards IAS/IFRS by the developing countries. Journal of Economics Finance and Administrative Science, 18(35), 56-62. DOI: https://doi.org/10.1016/S2077-1886(13)70030-1
