Consistency Matters in International Financial Reporting Standards
From the Archive
News created: 01 Feb 2011Dr Parmod Chand has recently completed his PhD Thesis at Macquarie University concentrating on the implications of the global trend towards convergence of financial reporting standards, using Australia and Fiji as comparative case studies.
Dr Chand examines how different countries adopt and enforce International Financial Reporting Standards (IFRSs). In particular, he examines whether IFRSs are adopted and interpreted in a consistent manner within the South Pacific region.
Parmod’s thesis argues that investors and other stakeholders in the economy require useful and comparable financial information on business performances so that they are able to make informed and correct economic decisions. Different interpretations of the same accounting standards would necessarily result in different decisions being made by professional accountants and would have the potential to undermine the credibility of accounting information.
In his thesis, Parmod stresses the importance of reducing the divergence in the application of accounting standards in similar situations and consequently enhancing the comparability and accuracy of financial statements. A number of policy implications for accounting regulators have emerged from Dr Chand’s study to help facilitate greater consistency in the interpretation and application of accounting standards.
His research has been the catalyst for further research papers which have been presented at key international conferences dealing with important aspects of accounting convergence in America, Australia, New Zealand and Europe.
Contact Dr Parmod Chand, Department of Accounting and Finance, or for more information.