The process of global convergence ifrs/us-gaap. An empirical analysis on ifrs-compliant and us gaap-compliant financial statements

The recent process of accounting harmonisation made possible by the adoption in 2005 of IAS/IFRS methods represent the beginning of a practice tending to overcome the accounting differences not just at European level but more generally on a worldwide scale for the progressive adoption of a common global accounting language (Mc Gregor 1999; Pozzoli, 2003; Erikson et al., 2009). It emerges a super partes need for a project of convergence between the European discipline IAS/IFRS with the American accounting principles US GAAP, which justifies the progressive harmonisation of these two accounting systems (Tarca, 2005; Callagan, Treacy, 2007). This process of harmonisation would also represent a significant input for the globalisation of financial markets: accounting information could reach a great level of homogenisation to allow the comparison between financial, economic and capital data and the consequent improvement of economic and financial communication. The coexistence of two sets of accounting standards in the U.S. market and the need highlighted by the two standard setters to promote the convergence process are the main reasons behind the empirical research that is the object of this paper. We investigate these questions using the 2009 IFRS annual reports of companies based in four European countries: France, Germany, Italy and the UK and the 2009 US-GAAP annual reports of companies based in the US. The main purpose of our research is to evaluate the differences (Bloomer, 1996; Ampofo & Sellani, 2005; PwC, 2010; Nobes & Parker, 2010) between the two accounting standards, respectively IFRS and U.S. GAAP, in two specific areas. The first area of analysis relates to the general principles for drafting financial reports, while the second will consider the evaluation of specific accounting items. The second step of the analysis consists in taking into consideration the issues highlighted by the possibility of alternatives emerged within both IFRS and US-GAAP accounting systems.