International Differences in Accounting Practices under IFRS and the Influence of the USA

Abstract

This paper expands prior IFRS accounting systems’ classifications to a broader set of 27 countries where the IFRS adoption is a widespread practice, plus the United States of America (USA). The results suggest a classification distinguishing between three groups of countries, based on the similarity of their accounting practices: 1) Australia and New Zealand, 2) USA-influenced countries, and 3) South Africa, Oman and European countries. This study contributes to the literature not only by providing evidence of differences in accounting practices to a broader set of countries, but mainly by suggesting an economic explanation to the existence of accounting choices. In particular, the economic proximity to the USA may be an important factor influencing accounting practices in some countries even after the IFRS adoption.