Identifying Issues in Accounting Standards Harmonization: IFRS and DAS

This report examines the challenges and issues associated with harmonizing domestic accounting standards (DAS) with International Financial Reporting Standards (IFRS). The study aims to analyze the differences between DAS and IFRS, assess traditional accounting systems, understand IFRS, identify harmonization challenges, and recommend coordination methods. The research employs an inductive approach and interpretivism philosophy, utilizing secondary data from books, journals, and scholarly articles. The report highlights increased disclosure requirements, differences in rules regarding assets, liabilities, and cash flows, and the impact on accountants. The findings suggest that differences in accounting rules and regulations pose significant challenges for accountants and businesses seeking to align with international standards. The conclusion emphasizes the problems faced by accountants in developing coordination between DAS and IFRS, due to differences in accounting standards.

Title: To identify the issues faced while harmonising domestic accounting standards with
that of international standards such as IFRS.
Background and Rationale of the study
In order to develop standardisation in the accounting system and process IFRS was
introduced. Moreover, in the absence of havingstandard accounting systemit wouldnot be
possible for the stakeholders to make comparison of financials with another.In the recent times,
large number of companies isemploying IFRS and IAS with the motive to present fair and
comparable view of monetary aspects (Mhedhbi &et.al., 2016). However,it is not possible for the
firm to move from domestic accounting to the International with high ease. The main reasons
behind this, in the case of international accounting system disclose requirements are increased
significantly as compared to the prior times (Markelevich, Shaw & Weihs, 2016). This in turn
imposes issue in front of the accountants and thereby influences their overall. Hence, in this,
scholar will conduct analysis and resolve issue by conducting thematic perception test. By
evaluating the view of accounts and supporting the same with the secondary data findings
scholar will present the issues related to the co-ordination of domestic and international
accounting system.
Research aims and objectives
Aim: The aim of the present study is to analyse the differences that takeplace between
domestic and international accounting standards.
Objectives
 Toassess and evaluate the system of traditional accounting system (DAS).
 To develop understanding about international accounting standards (IAS) such as IFRS.
 To identify the challengesthat isassociated with the harmonisationof domestic accounting
system with international.
 Torecommend the ways through which co-ordination can be developed between domestic
and international accounting system.
Research questions
Q.1 Whatis the significance of traditional accounting system in the recent times?

Q.2 Howinternational accounting standards such as IFRS provides assistance in presenting the
fair view of financials?
Q.3 Whatare the challenges that influence the harmonisation level of traditional and international
accounting system?
Literature review
According to the views of Gomes & et.al., (2015)presentation of financial aspect or
information differs significantly from traditional to international accounting system. In
traditional accounting, accountants do not lay more focus on presenting information in detail. On
the other side, IAS focuses on reducing the forecast errors to a great extent (Nastase, Calin, &
Margina, 2016). Hence, IAS requires more work and in-depth presentation of each aspect. On the
other side, Henderson & et.al., (2015)presented that in DAS accountantsundertake depreciation
method as per their convenience. Some business units depreciate assets on the basis of straight
line and diminishing method. Whereas,IAS 16 entails that on initial level property, plant and
equipment are measured at cost.Further, it is subsequently measured on the basis of either cost or
revaluation model (Urbanovič, Wilkins & Huisman, 2016).
Hence, in this, amount is depreciated and allocate on a systematic manner. Thus, lengthy
process of depreciation creates issue in front of accountants in relation to co-ordination. In
contrast to this, Florou, Kosi and Pope (2017) mentioned that divergence between DAS and IAS
has no significant impact on earning management. However, itnegatively affects
thesynchronization of stock prices to a great extent.In accordance with Bamber & McMeeking
(2016)treatment of reserves and impairment is shown indetail under IFRS. Hence, companies
which are following DAS do not undertake in-depth process with the motive to save time. Thus,
limited time frame and requirement of more resources imposes issue in front of accountants.
Markelevich, Shaw & Weihs, 2016) stated that rules as well as regulations of
international and domestic marketing vary to the significant level. In the case of domestic
marketimg, accountant employs rules as per their understanding, knowledge and conveience
level. On the other side, international accounting system having specific rules regarding the
recording of each and every transaction. Hence, it is the possibility that profitability aspect in
financial statement will decrease if accountant moves from domestic to international system.

This is one of the main issues that create issue in front of business units or accountants in
harmonisingboth domestic and international accoumnting system.
Research Methodology
 Research approach and philosophy: With the motive to assess the issues that are faced
by accountants in harmonising domestic and international accounting aspects researcher
will apply inductive approach and interpretivism philosophy. The main reasons behind
the selection of such approch and philosophy is that it helps in conducting suitable
evaluation of issue when qualitative investigation is undertaken.
 Research type: Further, qualitative research type will be undertaken by the researcher for
presenting suitable view of study or investigation.
 Data collection: Out of two data collection methods, scholar will undertake secondary
sources to gather data in line with the research issue that is going to be investigated.
Hence, assessment of books, journals and scholarly articles related domestic and
international accounting system will be done by the researcher to gathers secondary data.
 Data analysis: In order to analyze data set scholar will conduct thematic analysis which
in turn helps in discoverinh appropriate information from qualitative data set.
Conclusion
On the basis of secondary data evaluation, it has been concluded that in increased
disclosure requirements regarding the financial aspect imposes issue. Further, due to having
differences in the rules pertaining to intangible assets, lease, equity, reserve, liabilities, tax,cash
flows and impairments accountants face problem in developing co-ordination between DAS
&IAS.

REFERENCES
Bamber, M. & McMeeking, K., (2016). An examination of international accounting standard-
setting due process and the implications for legitimacy. The British Accounting
Review. 48(1). pp.59-73.
Florou, A., Kosi, U. & Pope, P. F., (2017). Are international accounting standards more credit
relevant than domestic standards?. Accounting and Business Research. 47(1). pp.1-29.
Gomes, D. & et.al., (2015). Moving from regional to international publishing in accounting
history: Pressures, issues, strategies and implications. Accounting History. 20(2). pp.183-205.
Henderson, S. & et.al., (2015). Issues in financial accounting. Pearson Higher Education AU.
Markelevich, A., Shaw, L. & Weihs, H., (2016). Information content of IFRS versus domestic
accounting standards: evidence from mandatory IFRS adoption in Israel. International
Journal of Accounting, Auditing and Performance Evaluation. 12(2). pp.167-211.
Mhedhbi, K. & et.al., (2016). Adoption of international accounting standards and performance of
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Nastase, G., Calin, A. M. & Margina, O., (2016). INTERNATIONAL ACCOUNTING
STANDARD NO. 16 TANGIBLE ASSETS AND ITS PRACTICAL
IMPLEMENTATION. Calitatea. 17(S1). p.285.
Urbanovič, J., Wilkins, S. & Huisman, J., (2016). Issues and challenges for small countries in
attracting and hosting international students: the case of Lithuania. Studies in Higher
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