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The Accounting Review Vol. 55 No. 3 1980

The Impact of Disclosure and Measurement Practices on International Accounting Classifications.

R. D. Nair1; Werner G. Frank2

1 Assistant Professor of Accounting, University of Wisconsin-Madison. 1 · 2 Professor of Accounting, University of Wisconsin-Madison. 2

Abstract

This article examines whether the classification of countries into groups based on their accounting practices is the same whether measurement or disclosure practices are used to do the grouping. Data from the Price Waterhouse & Co. survey relating to these two subsets of accounting practices for 38 countries in 1973 and 46 countries in 1975 formed the data base. The groupings yielded by analyzing disclosure practices were found to be different from groupings based on measurement practices. A further analysis was then done to determine whether the same underlying environmental variables (such as the structure of the economy and trading affiliations of each country) were associated with the two groupings. It was found that although economic variables were related to the groupings, the specific variables most closely related to each subset were different. Because of these differences, it may be more difficult for policy makers to achieve harmonization of accounting practices than was previously realized.

DOI
10.2308/tar-4512492
Volume
55
Issue
3
Pages
426-450
Language
en
Sources
openalex crossref

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