International Journal of Financial Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Harmonization of Accounting Practices: A Study of Selected Pharmaceutical Companies in India


     

   Subscribe/Renew Journal


The study investigates whether corporate disclosure practices of Indian pharmaceuticals firms approach to harmonize with IFRS. It suggests that the firms follow material disclosures if the accounting policies are made mandatory for the companies while they show diversity if there is scope for alternative accounting treatments. Besides the empirical examination, the present study also puts forward a new methodological approach (viz., Partial Compatibility Index) in measuring the level of harmonization. The empirical results show that there is still space of diversification since the C- index figure is below its moderate figure (0.60) and the target figure (1.00) as well.

Keywords

IFRS, Accounting Policies, Corporate Practices
Subscription Login to verify subscription
User
Notifications
Font Size

  • Archer, S., Delvaille, P. & McLeay, S. (1996). A Statistical Model of International Accounting Harmonization. Abacus, 32, pp. 1 - 29.

  • Archer, S., Delvaille, P. & McLeay, S. (1995). The Measurement of Harmonization and The Comparability of Financial Statement Items: Within- Country and between Country Effects. Accounting and Business Research, 25, pp. 67 - 80.

  • Benzacar, K. (2008). IFRS – The Next Accounting Revaluation. CMA Management, June/July, pp. 26 - 30.

  • Chander, A. (2006). Review of Practical Implementation Issues of International Financial Reporting Standards, United Nations Conference on Trade and Development. Retrieved from http://unctad.org/en/ docs/c2isard33a3_en.pdf.

  • Choi, F., Frost C., & Gary, K. (2002). International Accounting(4th ed.). New Jersey: Prentice Hall. Kleekämpfer, H., Kuhlewind, M., & Alvarez, M. (2002). Grundlagen, Ziele, Organisation, Entwicklung und Bedeutung des IASB, in: Rechnungslegung nach International Accounting Standards (IAS), editedy by Baetge, D., Kleekämper, H., Wollmert, P. & Kirsch H. (2002), Schäfer-Poeschel, Stuttgart, (2nd ed.)

  • Choi, F. D. S., Frost, C. A. & Meek, G. K. (1999). International Accounting (3rd ed.). Prentice-Hall.

  • Doupink, S. & Taylor, M. E. (1985). An Empirical Investigation of the Observance of IASC Standards in Western Europe. Management International Review, 25, pp. 27 - 33.

  • Emenyonu, E. N. & Gray, S. J. (1992). EC Accounting Harmonization: An Empirical Study of Measurement Practices in France, Germany and UK. Accounting and Business Research, 23, pp. 49 - 58.

  • Evans, T. G. & Taylor, M. E. (1982). Bottom-Line Compliance with the IASC: A Comparative Analysis. International Journal of Accounting, fall, pp. 115 - 128.

  • Fritz, S. & Christina, L. (2003). The International Harmonization Process of Accounting Standards. Retrieved from www.diva-portal.org/diva/getDocument? urn_nbn_se_liu_diva-15541__fulltext.pdf

  • ICAI. (2007). Concept Paper on Convergence with IFRSs in India, Retrieved from http://www.icai.org/resource_ file/12436announ1186.pdf

  • Kleekämper, H., Kuhlewind, M. & Alvarez, M. (2002). Grundlagen, Ziele, Organisation, Entwicklung und Bedeutung des IASB, In: Rechnungslegung nach International Accounting Standards (IAS), Editedy by Baetge, D.; Kleekämper, H.; Wollmert, P.; Kirsch H. Schäfer-Poeschel, Stuttgart, (2nd ed.).

  • McLeay, S., Neal D. & Tollington, T. (1999). International Standardization and Harmonization: A New Measurement Technique. Journal of International Financial Management and Accounting, 10(1).

  • Nair, R. D. & Frank, W. C. (1981). The Harmonization of International Accounting Standards. International Journal of Accounting, fall, pp. 61 - 77.

  • Nobes, C. W. (1987). An Empirical Investigation of the Observance of IASC Standards in Western Europe: A Comment. Management International Review, 27(4), pp. 78 - 79.

  • Pierce, A., & Weetman, P. (2000). The Impact of Non- Disclosure on Measurement of de facto Harmonization: A Two-Country Comparison. Munich: European Accounting Association Congress.

  • Rahman, A., Perrera, H., & Ganesh, S. (1996). Management of Formal Harmonization in Accounting: An Exploratory Study. Accounting and Business Research, 26, pp. 325 - 339.

  • Roberts, C., Weetman, P., & Gordon P. (1998). International Financial Accounting – A Comparative Approach. London: Financial Times Pitman Publishing.

  • Tay, J. S. W. & Parker, R. H. (1990). Measuring International Harmonization and Standardization. Abacus.

  • Van der Tas, L. G. (1988). Measuring Harmonization of Financial Reporting Practice. Accounting and Business Research, 18(70), pp. 157 - 169.

  • Van der Tas, L. G. (1992). Measuring International Harmonization and Standardization: A Comment. Abacus, 28(2), pp. 211 - 216.

  • Van der Tas, L. G. (1992). Evidence of E C Financial Reporting Practice Harmonization: The Case of Deferred Taxation. European Accounting Review, 1(1), pp. 69 - 104.

  • Walton, P. (1992). Harmonization of Accounting in France and Britain: Some Evidence. Abacus, 28(2), pp. 186 - 199.

  • Wolk, H., Tearney, M., & Dodd, J. (2001). A Conceptual and Intestinal Approach: Accounting Theory (5th ed.). South-Western College Publishing.

  • Yang, D. C. & Lee, C. M. (1994). An Empirical Analysis of Pan-Pacific Accounting Practices in the 1970s. Advances in International Accounting, 6, pp. 133 -145.


Abstract Views: 338

PDF Views: 0




  • Harmonization of Accounting Practices: A Study of Selected Pharmaceutical Companies in India

Abstract Views: 338  |  PDF Views: 0

Authors

Abstract


The study investigates whether corporate disclosure practices of Indian pharmaceuticals firms approach to harmonize with IFRS. It suggests that the firms follow material disclosures if the accounting policies are made mandatory for the companies while they show diversity if there is scope for alternative accounting treatments. Besides the empirical examination, the present study also puts forward a new methodological approach (viz., Partial Compatibility Index) in measuring the level of harmonization. The empirical results show that there is still space of diversification since the C- index figure is below its moderate figure (0.60) and the target figure (1.00) as well.

Keywords


IFRS, Accounting Policies, Corporate Practices

References