The rough road towards accounting harmonization of a developing country with a French accounting culture
ISSN: 1030-9616
Article publication date: 18 October 2021
Issue publication date: 17 June 2022
Abstract
Purpose
The purpose of this paper is to investigate in-depth and explain the issues related to the experience of Tunisia, a developing country, in its attempt to move from Euro-Continental rule-based generally accepted accounting principles (GAAPs) to an accounting system adapted to international financial reporting standards (IFRS).
Design/methodology/approach
The study is conducted via a qualitative methodology based on a content analysis of primary data from interviews with key actors involved in financial reporting in Tunisia.
Findings
Findings reveal that local Tunisian GAAPs, adapted to IFRS in their 1996 version, failed to establish a financial reporting accounting culture and meet public-interest firms’ informational needs. This is mainly related to factors, such as the simplified methods adopted (generally adequate to the identified needs of users of small and medium-sized entity financial statements) and the hybrid aspect of the Tunisian accounting standards due to the co-existence of Euro-Continental and Anglo-Saxon parties. Moreover, the findings show that the lack of political willpower and the absence of updates to changes in IFRS have compromised the proper functioning of standardization and control structures.
Practical implications
The study’s results may interest regulators and policymakers of many developing countries that have not pursued the harmonization of their local GAAPs with IFRS. In addition, findings from the research provide insights into the rough road towards harmonization, the dysfunctions of the latter and delays in developing countries.
Originality/value
The research highlights the complexity for an emerging country with Euro-Continental accounting traditions to move to IFRS.
Keywords
Acknowledgements
The authors gratefully acknowledge the valuable comments of Dr Harj Singh and the two anonymous reviewers.
Citation
Ben Slama, F., Oussii, A.A. and Klibi, M.F. (2022), "The rough road towards accounting harmonization of a developing country with a French accounting culture", Accounting Research Journal, Vol. 35 No. 4, pp. 490-507. https://doi.org/10.1108/ARJ-02-2021-0075
Publisher
:Emerald Publishing Limited
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