Influence of National Culture on IFRS Practice. An Empirical Study in France, Germany and the United Kingdom
The 2002 enacted IAS Regulation had a major impact on the EU accounting harmonization process. It affected approximately 7,000 European capital market oriented firms which were obliged to prepare their group accounts in accordance with IFRS from 2005 on. However, de iure harmonization does not necessarily lead to de facto harmonization. Although EU capital market oriented companies apply the same set of accounting standards, national cultural and institutional characteristics might find their way into IFRS financial statements and prevent an internationally consistent application of IFRS.