AN INTERNATIONAL PERSPECTIVE UPON THE IMPACT OF FINANCIAL STATEMNT FORM ON THE BUSINESS DECISION MAKING PROCESS

Abstract

In the context of globalization, where traditional borders of trade have been increasingly cast aside, the accounting information users are met with difficulties in reaching their individual interests in relation to a given economic entity, as a result of the use of more than one financial reporting system. The development of the International Financial Reporting Standards and its various degrees of adoption seeks to create a unique common language for economic activities, which would be unanimously recognized by users regardless of their multi cultural background. The present paper shows that this effort is far from being complete as the transition from traditional reporting standards to IFRS has a number of consequences on the form of the accounting information, and thus on the way it is perceived by the each individual user.