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\plain\pard\sl-270 \li15 \ri247 \fi465 \expndtw-3 \b \f10 \fs23 INTERNATIONAL HA

RMONISATION OF ACCOUNTING IMPERIALISM \plain\par
\pard\sl-270 \li15 \ri247 \fi2520 \expndtw-5 \b \f10 \fs23 AN AUSTRALIAN PERSPEC
TIVE
\plain\par
\pard\sl-491 \li3330 \ri222 \fi1065 \expndtw-36 \f10 \fs30 by
\plain\par
\sl-124\fs12\par\sl-240\fs24\par\pard\pard\sl-340 \li1845 \ri222 \fi1485 \expndt
w-5 \f10 \fs30 Indra Abeysekera
\plain\par
\sl-135\fs13\par\sl-240\fs24\par\pard\pard\sl-308 \li15 \ri222 \fi1830 \expndtw6 \f10 \fs27 Department of Accounting and Finance
\plain\par
\pard\sl-308 \li15 \ri222 \fi2925 \expndtw-8 \f10 \fs27 Macquarie University
\plain\par
\sl-81\fs8\par\sl-240\fs24\par\pard\pard\sl-308 \li15 \ri222 \fi3120 \expndtw-8
\f10 \fs27 Sydney, Australia
\plain\par
\sl-306\fs31\par\pard\pard\sl-308 \li15 \ri222 \expndtw-5 \f10 \fs27 Name of ins
titution the work originates from:
\plain\par
\pard\sl-465 \li15 \ri222 \expndtw-7 \f10 \fs27 Department of Accounting
\plain\expndtw-6 \f10 \fs27 Division of Economics and Financial Studies
\plain\expndtw-6 \f10 \fs27 Macquarie University NSW 2109
\plain\expndtw-13 \f10 \fs27 Australia
\plain\par
\sl-141\fs14\par\sl-240\fs24\par\par\pard\pard\sl-308 \li15 \ri222 \expndtw-6 \f
10 \fs27 Correspondence details:
\par
\sect\sectd\sbknone\cols2\colno1\colw1920\colsr884\colno2\colw5635
\plain\pard\sl-465 \li15 \ri0 \expndtw-21 \f10 \fs27 Name:
\plain\expndtw-7 \f10 \fs27 Postal address:
\plain\par
\sl-126\fs13\par\sl-240\fs24\par\par\par\par\pard\pard\sl-308 \li15 \ri0 \expndt
w-16 \f10 \fs27 Phone:
\plain\par
\pard\sl-480 \li15 \ri0 \expndtw-17 \f10 \fs27 Email:
\par
\column
\plain\pard\sl-465 \li0 \ri2295 \expndtw-8 \f10 \fs27 Indra Abeysekera
\plain\expndtw-11 \f10 \fs27 P.O. Box 5
\plain\expndtw-8 \f10 \fs27 Eastwood NSW 2122
\plain\expndtw-13 \f10 \fs27 Australia
\plain\expndtw-8 \f10 \fs27 +61 417 405 399
\plain\expndtw-7 \f10 \fs27 iabeysek@efs.mq.edu.au
\par
\sect\sectd\sbknone\plain\sl-247\fs25\par\sl-240\fs24\par\par\pard\pard\sl-232 \
li15 \ri36 \expndtw0 \f20 \fs23 ACKNOWLEDGEMENTS: The author is indebted to comm
ents of Associate Professor
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri36 \expndtw0 \f20 \fs23 Marcia Annise
tte-Grimes and seminar participants of University of Victoria, Footscray
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw1 \f20 \fs23 Park campus.
The responsibility for the contents of this paper nonetheless remains
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw-4 \f20 \fs23 entirely tha

t of the author.
\plain\par
\sl-172\fs17\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li15 \ri36 \fi8250 \e
xpndtw-2 \f20 \fs23 1
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}}}
}}\margt2320\margb280\margr1720\margl1740
\plain\pard\sl-270 \li15 \ri38 \fi1455 \expndtw-4 \b \f20 \fs23 INTERNATIONAL HA
RMONISATION OF ACCOUNTING
\plain\par
\pard\sl-270 \li15 \ri38 \fi1800 \expndtw-4 \b \f20 \fs23 {\ul I}{\ul M}{\ul P}{
\ul E}{\ul R}{\ul I}{\ul A}{\ul L}{\ul I}{\ul S}{\ul M}{\ul }{\ul -}{\ul }{\ul
A}{\ul N}{\ul }{\ul A}{\ul U}{\ul S}{\ul T}{\ul R}{\ul A}{\ul L}{\ul I}{\ul A}
{\ul N}{\ul }{\ul P}{\ul E}{\ul R}{\ul S}{\ul P}{\ul E}{\ul C}{\ul T}{\ul I}{\u
l V}{\ul E}
\plain\par
0 \f20 \fs23 Abstract
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri34 \expndtw-2 \f20 \fs23 Numerous aut
hors, both practitioners and scholars, have constructed various justifications
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri34 \expndtw0 \f20 \fs23 for the inter
national harmonisation of accounting standards. To understand the motive
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri34 \expndtw1 \f20 \fs23 behind establ
ishing and implementing International Financial Reporting Standards

\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri34 \expndtw1 \f20 \fs23 (IFRS), this
paper examined two reasons cited in the literature (reduction in cost of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri34 \expndtw0 \f20 \fs23 financial rep
orting and improvement in capital market efficiency) which argue for the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri34 \expndtw2 \f20 \fs23 setting of a
global set of standards. This paper examined the constitution of the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri34 \expndtw0 \f20 \fs23 International
Accounting Standards Board (IASB) and the relative positions of power of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri34 \expndtw0 \f20 \fs23 the member na
tions such as Australia, the EU and the US. The paper then analyses how
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri34 \expndtw0 \f20 \fs23 IFRS help to
expand imperialism. Subsequently, the post World War II imperialism of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri34 \expndtw0 \f20 \fs23 the US is exa
mined to understand how the US can emerge as the most influential nation
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri34 \expndtw-3 \f20 \fs23 in setting g
lobally enforced accounting standards.
\plain\par
\sl-97\fs10\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri34 \fi705 \expndtw
-2 \f20 \fs23 Key words: Australia, EU, IASB, IFRS, imperialism, post-imperialis
m. US
\par
\plain\sl-112\fs11\par\sl-240\fs24\par\par\par\par\par\par\par\par\par\par\par\p
ar\par\par\par\par\par\par\par\par\pard\pard\sl-232 \li8265 \ri70 \expndtw-2 \f2
0 \fs23 2
\par
{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
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0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
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2800a28a2800a28a2800a28a2803ffd9
}}}
\plain\pard\sl-255 \li15 \ri816 \fi1455 \expndtw-4 \b \f20 \fs23 {\ul I}{\ul N}{
\ul T}{\ul E}{\ul R}{\ul N}{\ul A}{\ul T}{\ul I}{\ul O}{\ul N}{\ul A}{\ul L}{\ul
}{\ul H}{\ul A}{\ul R}{\ul M}{\ul O}{\ul N}{\ul I}{\ul S}{\ul A}{\ul T}{\ul I}
{\ul O}{\ul N}{\ul }{\ul O}{\ul F}{\ul }{\ul A}{\ul C}{\ul C}{\ul O}{\ul U}{\u
l N}{\ul T}{\ul I}{\ul N}{\ul G}
\plain\par
\pard\sl-255 \li15 \ri816 \fi3720 \expndtw-8 \b \f20 \fs23 IMPERIALISM
\plain\par
\sl-112\fs11\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri734 \expndtw-26 \
b \f20 \fs23 1.
\plain\tx715 \tab \expndtw-6 \b \f20 \fs23 Introduction
\par
\plain\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 Financi
al reporting, the principal means of communication between investors and firms,
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 is a crucial
tool for a firm's board of directors to make decisions on resource allocation.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 The accountin
g standards that guide financial reporting set the terms of a critical trust
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw-2 \f20 \fs23 relationship
between the firm and their stakeholders (Lenihan & Hume, 2003).
\plain\par
\sl-112\fs11\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li15 \ri35 \expndtw2
\f20 \fs23 In Australia, the trust between the firm and shareholders has been sh
aken by the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 seemingly irr
ational behaviour, as seen in their recent decision-making, of the Financial
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw1 \f20 \fs23 Reporting Cou
ncil (FRC), a body sponsored by the Commonwealth government of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-2 \f20 \fs23 Australia. I
n particular, the FRC hastily embraced the wholesale adoption of International
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 Financial Re
porting Standards (IFRS) released by the International Accounting Standards
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw1 \f20 \fs23 Board (IASB)
effective from 1 January 2005. The FRC's decision to adopt IFRS
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 contrasts wit
h Australia's image as one of the leading authorities in accounting with
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw-3 \f20 \fs23 extensive re
sources in research and development (Haswell & McKinnon, 2003).
\plain\par
\sl-97\fs10\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \
f20 \fs23 This seemingly irrational behaviour by the FRC has three implications.
First, the future
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 risks to cor
porate governance and favouring large corporate interests are being associated
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw1 \f20 \fs23 with the hast
y decision. Although the cost of information in financial reporting is
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 expected to

reduce due to the uniformity of financial reporting, the quality of information
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 produced by a
dopting IFRS is being questioned (Haswell & McKinnon, 2003). Second,
\plain\par
\par
{\shp
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0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
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}}}
\plain\pard\sl-303 \li15 \ri40 \expndtw0 \f20 \fs23 the FRC has not adequately c
onsidered the implications of allowing a foreign private\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 sector body t
o determine the financial reporting practices in Australia (Howieson &
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 Langfield-Smi
th, 2003). Third, the poor consultative process undertaken by the FRC
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 leads to blin
d acceptance of IFRS, standards which may not have relevance to the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 preparers and
users of financial reports in Australia. The decision- making procedure
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 undertaken by
the Australian government contrasts with that of the European Union
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 (EU), which u
ndertook an extensive and public consultation process to make a decision
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-3 \f20 \fs23 to accept th
e IFRS (Howieson & Langfield-Smith, 2003).
\plain\par
\sl-112\fs11\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li15 \ri40 \expndtw-2
\f20 \fs23 Leniham and Hume (2003) cite that the Australian government rushed i
nto a decision due
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 to the fact t
hat the superiority of US GAAP was challenged by the collapse of Enron,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-2 \f20 \fs23 leading to a
n embracement of a more principle-based as opposed to a rule-based financial
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 reporting fra
mework (Haswell & McKinnon, 2003). According to Lenihan & Hume
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 (2003), the a
ttraction of a rule-based system is that it is clear and conceptually simple.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 However, the
judicial system universally acknowledges it as a too blunt instrument for
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 justice. Prin
ciples on the other hand, are more general and require interpretation, and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 most legal sy
stems heavily rely on principle-based approaches. According to Sawa
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 (2002), Austr
alia preferred principle-based IFRS rather than rule-based US GAAP
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 because capit
al markets are regulated by a principle-based system. Although previous
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 authors have
offered reasons why Australia preferred the principle-based IFRS, the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw-3 \f20 \fs23 literature h
as not adequately addressed the underlying motives for Australia's adoption of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 IFRS. This pa
per attempts to fill that vacuum by examining the possible motives behind
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-1 \f20 \fs23 the Australi
an government's hasty decision to adopt IFRS and the possible implications
\par
\plain\sl-262\fs26\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li8265 \ri52 \e
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}

\plain\pard\sl-303 \li15 \ri46 \expndtw0 \f20 \fs23 for Australia and the rest o
f the world. Haswell and McKinnon (2003) argue that if the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 main purpose
of adopting IFRS is to reduce the cost of information to increase capital
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 flows in the
globe, it is interesting to consider why a country such as Pakistan, which
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 adopted a com
plete set of IFRS, has not been able to attract large amounts of global
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-2 \f20 \fs23 capital. How
ever, previous literature provides little analysis as to which nations could and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw1 \f20 \fs23 could not red
uce the cost of information through the adoption of IFRS. This paper
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw-4 \f20 \fs23 attempts to
offer a broad analysis.
\plain\par
\f20 \fs23 Although Mackenzie (2003) states that the adoption of IFRS will impr
ove capital market
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 flows, Macken
zie does not discuss the beneficiaries of the resulting improvement in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw2 \f20 \fs23 capital marke
t flows. This paper analyses the capital flows from an institutional
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 perspective
and sheds light onto who would emerge as the possible winners and losers of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-3 \f20 \fs23 the implemen
tation of IFRS to improve capital flows.
\plain\par
\sl-97\fs10\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \
f20 \fs23 The International Accounting Standards Board (IASB), which develops an
d implements
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 IFRS, is com
prised of eight members each representing different jurisdictions (Australia,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw2 \f20 \fs23 Canada, Franc
e, Japan, Germany, New Zealand, United Kingdom, and the US)
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw1 \f20 \fs23 (Alfredson, 2
003). Nations representing different jurisdictions each have their own
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw1 \f20 \fs23 preferred int
erests in setting and implementing IFRS. If their preferred interests are
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 included in I
FRS, they can influence the financial reporting of other nations. This paper
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw1 \f20 \fs23 therefore exa
mines the hierarchical control within the IASB in setting accounting

\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-2 \f20 \fs23 standards wh
ich can be used to control distant nations.
\par
\plain\sl-82\fs8\par\sl-240\fs24\par\par\par\par\par\par\pard\pard\sl-232 \li826
5 \ri70 \expndtw-2 \f20 \fs23 5
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri47 \expndtw0 \f20 \fs23 According to Hegarty (1997),

the changing relationship between geography and public
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 interest whic
h becomes the basis for the attempt to introduce globally enforced IFRS.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 This paper ex
amines whether the motivation of international harmonisation is to protect
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw-1 \f20 \fs23 the expandin
g regulatory turf created by the few international standard setters by making
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw1 \f20 \fs23 national regu
lators comply with them or to protect the public interest of the global
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw1 \f20 \fs23 community. Th
is paper examines the expanding regulatory turf of harmonisation It
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 reflects on h
ow accounting regulation can maintain, exercise and expand control over
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 distant terri
tories through political, economic and cultural processes. In that light, the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 paper attempt
s to explore whether the motivation behind the creation and adoption of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 IFRS is more
concerned with the shaping such processes of control rather than with the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-2 \f20 \fs23 impetus of n
eutrality and uniformity of financial reporting standards.
\plain\par
\f20 \fs23 With the aim to answer the questions raised above, section two analys
es the claim made
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri47 \expndtw-2 \f20 \fs23 by the IASB,
that the implementation of IFRS will result in a reduction in the information
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw1 \f20 \fs23 costs associa
ted with financial reporting. Section three examines the claim to the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw1 \f20 \fs23 improvement i
n capital market efficiency through the adoption of IFRS and which
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-1 \f20 \fs23 nations are
bound to benefit from IFRS. Section four reviews Australia's position in the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 IASB committe
e and the possible reasons for Australia to make a decision for wholesale
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw1 \f20 \fs23 adoption of I
FRS from 1 January 2005. Further, it examines the hierarchical power
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 structure of
nations in setting and controlling the agenda of IFRS. Section five examines
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw-1 \f20 \fs23 how IFRS is
linked to imperialism within the context of controlling the decision- making
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw2 \f20 \fs23 of economic r
esources. Section six examines post World War II imperialism to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 understand th
e role of the US in setting and implementing accounting standards. Section
\par
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}

\plain\pard\sl-303 \li15 \ri68 \expndtw0 \f20 \fs23 seven remarks as to why the
US emerges as the most influential nation in setting and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri68 \expndtw-2 \f20 \fs23 implementing
accounting standards across the globe.
\par
xpndtw-26 \b \f20 \fs23 2.
\plain\tx715 \tab \expndtw-4 \b \f20 \fs23 Reduction in information cost
\par
\plain\sl-97\fs10\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri49 \expndtw0
\f20 \fs23 Several authors have stated the major benefit from the adoption of I
FRS is the reduction
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw-1 \f20 \fs23 in informati
on costs (Haswell & McKinnon, 2003; Howieson & Langfiled-Smith, 2003).
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 However, this
paper disagrees with the notion that the adoption of IFRS will reduce the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw-3 \f20 \fs23 cost of info
rmation for the following four reasons.
\par
\plain\sl-172\fs17\par\sl-240\fs24\par\par\par\par\par\pard\pard\sl-232 \li15 \r
i50 \expndtw0 \f20 \fs23 First, IFRS takes a prudent approach in recognising ass
ets and the treatment of assets
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw1 \f20 \fs23 revaluation (
Dixon 2003). It has reduced alternative ways of recording transactions
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw0 \f20 \fs23 available in
accounting standards in Australia (Alfredson, 2003; IASB press release,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw1 \f20 \fs23 2003; Zeff, 2
002). The prudent approach adopted by IASB in setting IFRS (such as
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri50 \expndtw2 \f20 \fs23 applying impa
irment test on assets and writing off intangibles which cannot be
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw-1 \f20 \fs23 objectively
verified in reference to an active market) alters the reporting value rather tha
n
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri50 \expndtw-5 \f20 \fs23 fair value o
f the firm.
\par
i62 \expndtw1 \f20 \fs23 Second, the IFRS also alter the balance sheet compositi
on. It reclassifies preference
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri62 \expndtw0 \f20 \fs23 shares as loa
ns, imposing strict conditions on recognising liabilities such as derivatives
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri62 \expndtw0 \f20 \fs23 (Ravlic, 2003
). Although they may have an impact on altering gearing ratio, they have
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri62 \expndtw-3 \f20 \fs23 little impac
t on reporting the fair value of the firm.
\plain\par
\sl-232\fs23\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri62 \fi8250 \expnd
tw-2 \f20 \fs23 7
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-333 \li15 \ri37 \expndtw1 \f20 \fs23 Third, the prudent approach
adopted by IFRS has increased the 'unexplained' gap

\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri37 \expndtw-1 \f20 \fs23 between the
fair price and the reported value (net book value) of the firm. Since investors
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-1 \f20 \fs23 are not full
y aware of the gap between the fair value and reported value of the firm (Lev,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 Sarath & Soug
ianis, 1999), this information gap creates two broad classes of investors:
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-3 \f20 \fs23 those that h
ave access to information relating to the 'unexplained gap' (perhaps shared at
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 private meeti
ngs) and those that don't (Marr, Mouritsen & Bukh, 2003). The investors
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 who have acce
ss to information that explicates the 'unexplained gap' can make better
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 economic deci
sions as compared to those without the information. Therefore, this paper
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri37 \expndtw-1 \f20 \fs23 agrees with
Hines' (1991) proposition that the change in reporting is merely a change in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-3 \f20 \fs23 the social c
onstruction of accounting numbers.
\par
i68 \expndtw-1 \f20 \fs23 Fourth, this paper also agrees with several authors wh
o point out that the standard setting
\par
\plain\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri67 \expndtw0 \f20 \fs23 at the
IASB is
\plain\tx1646 \tab \expndtw0 \f20 \fs23 a negotiated process and has less to do
with meeting pre-determined
\par
\plain\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw-2 \f20 \fs23 outcom
es through implementation of IFRS (Collett, Godfrey & Hrasky, 2001; Lenihan &
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 Hume, 2003).
The diversity in reporting regimes is a result of an evolutionary process
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 that reflects
the uniqueness of cultural, legal and economic jurisdictions (Hegarty 1997,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw1 \f20 \fs23 p. 75). These
legitimate differences (arising from differences in concentrations of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 ownership of
firms) lead to different degrees of reliance on general purpose financial
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 reports, vari
ations in optimal debt-equity ratios, and different legal systems impacts on
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 accounting sy
stems. Furthermore, financial reporting in some jurisdictions is taxation\plain\par

\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 based and in
other jurisdictions is based on conceptual frameworks (Collett et al., 2001).
\plain\par
tw-2 \f20 \fs23 8
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri47 \expndtw2 \f20 \fs23 These differences lead the I
ASB to construct standards through a complex set of

\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw3 \f20 \fs23 compromises b
etween several jurisdictions and may not serve the needs and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 circumstances
of all jurisdictions (Spencer 1998, p. 21). Therefore, this paper challenges
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 the notion of
reduction in cost of information and agrees that the adoption of IFRS will
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-2 \f20 \fs23 only benefit
those nations whose cultural, legal and economic systems are similar to those
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 nations invol
ved in setting IFRS. This means that if other nations are indirectly forced to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 adopt the cul
tural, legal and economic systems prevailing in nations setting IFRS they
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-2 \f20 \fs23 will not der
ive the maximum benefits from its adoption.
\par
i3729 \expndtw-26 \b \f20 \fs23 3.
\plain\tx715 \tab \expndtw-3 \b \f20 \fs23 Increase in capital market efficiency
\par
\plain\sl-82\fs8\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri48 \expndtw-2
\f20 \fs23 The nations setting IFRS should benefit through the reduction of cos
t of capital due to the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 inflow of cap
ital into their capital market. The expanded capacity of the capital markets
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \f20 \fs23 of these nat
ions to raise capital also allows them to export their capital to other nations
at
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw-3 \f20 \fs23 a lower cost
and at an unparalleled scale. This paper agrees with Cald well (2000, pp. 253\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 259) who argu
es that this capital can then abort and distort the development of nations
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 (especially,
developing nations), which are dependant on that capital, in a manner that
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 best suits th
e requirements of the IFRS setting IASB nations. The form and arrangement
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \f20 \fs23 of capital t
ransfer can vary from one nation to another, but the outcome is the subjugation
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 of the intere
sts of the economically weaker developing nations. This capital determines
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 the type of i
ndustries and activities that will survive in economic and political terms and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 will be compl
ementary to the interests of the standard setting nations. It will also
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \f20 \fs23 reinforce an
d perpetuate low labour wages in developing nations so that the IFRS setting
\plain\par
tw-2 \f20 \fs23 9
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
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31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}

\plain\pard\sl-303 \li15 \ri64 \expndtw0 \f20 \fs23 IASB nations can invest capi
tal to reap the maximum profits. The low wages discourage
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri64 \expndtw0 \f20 \fs23 imperialist c
apitalists to replace them with machinery that reduces their profits. The
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri64 \expndtw0 \f20 \fs23 resurrection
of distorted development requires foreign aid that is again provided by the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri64 \expndtw-2 \f20 \fs23 imperialists
with attached conditions to further their own political and economic agenda.
\par
\plain\sl-277\fs28\par\sl-240\fs24\par\par\par\par\pard\pard\sl-232 \li15 \ri46
\expndtw0 \f20 \fs23 According to several authors an objective of the IFRS is to
increase the capital market
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw2 \f20 \fs23 efficiency by
setting globally accepted, high quality, comparable and transparent
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 accounting s
tandards (Alfredson, 2003; Howieson & Langfield-Smith, 2003). Mackenzie
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 (2003) argue
s that IFRS will increase the accuracy of pricing capital. This paper does not
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-2 \f20 \fs23 agree with M
ackenzie (2003) since the capital market must be fully efficient to accurately
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 price capita
l. However, as previously discussed in the paper, IFRS has moved away from
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 reporting rel
evant information to determine fair value of a firm by restricting itself to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-2 \f20 \fs23 reporting in
tangibles that can be measured in relation to an active market.
\par
\expndtw0 \f20 \fs23 Therefore, with the purposeful reduction of value relevant
information recognized in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw-1 \f20 \fs23 financial re
ports, it appears that IFRS set the agenda on how accounting elements should
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw-1 \f20 \fs23 be measured
and reported, and in determining profit figures reported by firms. The profit
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 figure determ
ined through application of IFRS appears to be designed to attract investor
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 capital accor
ding to the agenda set by a few nations prescribed to the rest of the nations.
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 This can be p
erceived as an attempt by the IFRS setting nations to further attract capital
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw1 \f20 \fs23 into their ca

pital markets at a lower cost of capital. The surplus capital can then be
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw1 \f20 \fs23 exported back
to other nations by firms in developed nations to produce goods and
\plain\par
xpndtw-28 \f20 \fs23 10
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri48 \expndtw0 \f20 \fs23 services. Isaak (1991, p. 16

9-171) states that the product cycle almost always begins in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw2 \f20 \fs23 high income m
arket economies through their entrepreneurial culture for product
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 innovation. T
hey provide a supportive environment for technological innovation, which
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 is facilitate
d by flexible risk insurance, enabling the commercial application of such
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 technological
change. When the product has reached standardisation of production, it
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 becomes cheap
er to produce in a low wage developing economy with the technologies
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 recycled by d
eveloped countries to maximise their capital accumulation (Isaak, 1991, p.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-2 \f20 \fs23 169-171). As
Harvey (1990) argues, when capital transcends geographical boundaries the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 success of ca
pital accumulation depends on the extent of the support by means of socio\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 economic reso
urces provided by other nations. The view that is taken here is that the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \f20 \fs23 promotion of
IFRS is an attempt to foster an environment conducive to the appropriation
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 of socio-econ
omic resources of other nations by IFRS standard-setting nations in their
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-11 \f20 \fs23 favour.
\plain\par
\f20 \fs23 This view is supported by Dwyer and Roberts (2004) who state that the
fluidity of capital
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 enables capit
al owners in the standard setting developed nations to control production in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 distant devel
oping nations (Dwyer & Roberts, 2004). Isaak (1991, p. 166) argues that
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 capital relat
ions freed from spatial constraints can give rise to imperfect competition
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \f20 \fs23 through a ch
aos of imperfect markets, and motivates firms and nations to maximise their
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 global market
share through co-operative pricing, transfer pricing, and economies of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 scale (Murray
1981, p. 147). Therefore, this paper agrees with the view expressed by
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 Clegg and Dun

kerley (1980, p. 5) and Holloway (1994). Clegg and Dunkerley (1980, p.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 5) states tha
t capital is more than a mere collection of transferable resources. Holloway
\par
xpndtw-28 \f20 \fs23 11
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri61 \expndtw0 \f20 \fs23 (1994) proposes that capital
is an institutional system through which technology and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri61 \expndtw0 \f20 \fs23 organisationa
l structures are increasingly developed and deployed to differentiate and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri61 \expndtw-2 \f20 \fs23 legitimate p
rocesses for capital maximisation by capital providing nations.
\par
i32 \expndtw0 \f20 \fs23 This paper agrees with Holloway (1994) who states that
by restricting the mobility of
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri32 \expndtw1 \f20 \fs23 labour capita
l in non-IFRS setting nations while promoting the mobility of capital
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 between the I
FRS setting nations reinforce the use of a low-wage system in developing
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 nations to ma
ximise the profits of the standard-setting nations. This territorial definition
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw1 \f20 \fs23 enforces a di
fferent global relation of labour to the global relation of capital. If the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-3 \f20 \fs23 objective of
adopting IFRS is to promote 'free' capital whilst restricting 'free' workers
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw1 \f20 \fs23 among territo
ries, then it can lead to capital providers in the developed territories
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-2 \f20 \fs23 (nations) ex
tracting profits while restricting the movement of labour.
\par
\expndtw0 \f20 \fs23 According to Luxemburg (2000, p. 102), the laws of capital
accumulation are deduced
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw-1 \f20 \fs23 from the eco
nomic roots of imperialism. Imperialism as a whole is nothing but a specific
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 method of cap
ital accumulation. The economic mechanism of imperialism is a rule of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 capital from
the old capitalist countries to dominate the economics and politics of other
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-5 \f20 \fs23 regions in t
he world.
\par
ard\pard\sl-232 \li8160 \ri52 \expndtw-28 \f20 \fs23 12
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
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2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri559 \expndtw-26 \b \f20 \fs23 4.
\plain\tx715 \tab \expndtw-4 \b \f20 \fs23 Australia's position in international
financial reporting standard setting
\par
\plain\sl-97\fs10\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri47 \expndtw0
\f20 \fs23 Previous authors also provide additional reasons for Australia's unf
ounded adoption of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 IFRS. First,
the political elites and voters who support the IFRS implementation and the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw1 \f20 \fs23 present gover

nment's political ideology are heavily entrenched in materialism and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 capitalism (M
cAllister 1992, pp. 262-263). Second, unlike other close colonial nations
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-1 \f20 \fs23 (such as Can
ada which challenged imperial authority since 1918 and South Africa which
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 redefined rel
ations with Britain in 1926) Australia sees little need for a redefinition of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-2 \f20 \fs23 Anglo-domini
on relations to preserve imperial links (Smith 1998, p. 33).
\par
i38 \expndtw0 \f20 \fs23 It is argued here that Australia, a post-colonial natio
n, has demonstrated its subservient
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw1 \f20 \fs23 nature to col
onial powers by the following two actions. First, the FRC endorsed the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 policy of the
gradual adoption of IFRS at its 22 March 2002 meeting. However, the 28
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw1 \f20 \fs23 June 2002 mee
ting hastily set a deadline to adopt IFRS by 1 January 2005, which
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 becomes appli
cable to all reporting entities under the Corporations Act (Howieson &
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 Langfield-Sm
ith, 2003; Miller, 2003). The FRC stated that its decision was in support of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw1 \f20 \fs23 the EU adopti
ng IFRS, arguing that Australia couldn't afford to lag behind Europe
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-2 \f20 \fs23 (Alfredson,
2003; Carrol & Dixon, 2003). The subservience of the Australian government
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 in adopting
IFRS is further reinforced by the fact that due consideration was not given to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw1 \f20 \fs23 the overall f
acts. The decision taken by the FRC seems to have ignored four critical
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 differences b
etween the EU Commission and Australia in adopting IFRS: (i) The EU
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-2 \f20 \fs23 decision ext
ends only to listed firms whereas Australia's decision extends to all reporting
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 firms. (ii) T
he EU Commission depends on member states to implement and enforce
\plain\par
tw-28 \f20 \fs23 13
\par
{\shp
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0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri43 \expndtw-2 \f20 \fs23 (compliance and non-complia
nce) the IFRS under their respective laws whereas Australia
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri43 \expndtw-1 \f20 \fs23 opted for ma
ndatory adoption of IFRS while it has a uniform law under the\i Corporations
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri43 \expndtw-1 \i \f20 \fs23 Act\i0 .
Most member states in the EU have no legislative binding GAAP which offers them
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri43 \expndtw0 \f20 \fs23 a wider choic
e of GAAP, for instance IASB or US. (iii) The EU Commission made the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri43 \expndtw1 \f20 \fs23 decision to a
dopt IFRS while it does not have any mandatory accounting standards
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri43 \expndtw-2 \f20 \fs23 whereas Aust
ralia has a comprehensive set of mandatory accounting standards. (iv) There
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri43 \expndtw1 \f20 \fs23 are distinct
language differences between EU member states where translation and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri43 \expndtw0 \f20 \fs23 interpretatio
n of IFRS can be an issue. In Australia, English is the official and national
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri43 \expndtw-3 \f20 \fs23 language (Ho
wieson & Langfield-Smith, 2003).
\par
i44 \expndtw0 \f20 \fs23 Second, the stand taken by the IASB to comply with the
requests made by the EU in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 developing IF
RS contrasts with the position taken by IASB on AASB concerns. The
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw-2 \f20 \fs23 recognition
of internally generated intangible assets and revaluation of intangible assets i
s
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw-1 \f20 \fs23 a domestic c
oncern in the Australian corporate sector (Koch, 2003). The ED of the IASB
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 proposes to d
efine an intangible asset as an identifiable non- monetary asset without
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 physical subs
tance (Picker & Hicks, 2003). An asset meets the identifiability criterion
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw-2 \f20 \fs23 when it meet
s one or the other of the following two: (i) it is separable, that is, it is cap
able
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 of being sepa
rated or divided from the entity and sold, transferred, licensed, rented or
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 exchanged, ei
ther individually or together with a related contract, asset or liability; (ii)
it
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 arises from c
ontractual or other legal rights, regardless of whether those rights are
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 transferable
or separable from the entity or from other rights and obligations (Picker &
\par
0 \ri70 \expndtw-28 \f20 \fs23 14
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri60 \expndtw-1 \f20 \fs23 Hicks, 2003). The changes p
roposed in IFRS to re-define recognition of intangibles have
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri60 \expndtw-2 \f20 \fs23 both financi
al reporting and taxation implications in Australia (Koch, 2003).
\par
i45 \expndtw-1 \f20 \fs23 However, the IASB reiterated to the AASB that it is un
likely to offer any concessions on
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw-2 \f20 \fs23 the basis of
national preferences and current practices. The IASB does not appear to think
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 it is a domes
tic jurisdiction-specific issue since the IASB regime only permits national
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 standards tha
t cover domestic jurisdiction specific issues (Stoddart, 2003). However, the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 IASB made no
reference to either capital market improvement or reduction in cost of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 information i
n its decline (Collett et al., 2001). The decline of Australia's request to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw1 \f20 \fs23 recognise int
angibles in financial statements could be because Australia is just one
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 member of the
eight members in the IASB which means Australia has little say in the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 IASB decisio
n- making outcomes. The majority of the IASB (including the US, Japan,
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 and other Eur
opean nations) prefers a pro-cost or anti-revaluation approach which tends
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 to indicate t
hat even IFRS development is a political process (Haswell & McKinnon,
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 2003). This p
aper argues that the IASB decision to decline recognition of intangibles in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 the financial
statements is a display of IASB power over the FRC of Australia as the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 former can ov
ercome any resistance displayed by the latter. This can be interpreted as
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 Australia's i
mplicit obedience to the IASB (Emerson, 1962, p. 33). Further, since the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 Australian go
vernment has passed legislation for the adoption of IFRS, further effort
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw-4 \f20 \fs23 from the IAS
B is unnecessary.
\par
\plain\sl-142\fs14\par\sl-240\fs24\par\par\par\par\par\par\par\par\pard\pard\sl232 \li8160 \ri70 \expndtw-28 \f20 \fs23 15
\par
{\shp

ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri44 \expndtw1 \f20 \fs23 Blainey (2001) who offers an
appropriate explanation for the surrender of power to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 international
organisations such as the IASB. According to Blainey (2001, pp. 61-62),
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw-1 \f20 \fs23 Australia ha
s a history of voluntarily surrendering or half-surrendering powers held by its
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 States or the
Commonwealth to world organisations. Sadly, some of these surrenders
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 have been mad
e without public debate or vote by the federal parliament. Ravlic (2002)
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 points out th
at this is much the case with the decision of the FRC, which was controlled
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw-3 \f20 \fs23 by the Commo
nwealth government without consulting the community and firms.
\par
i38 \expndtw0 \f20 \fs23 A sense of internationalism - a sense of being citizens
of the world - has over the past
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 few decades
grown at an exponential rate. The author argues that Australia, perhaps more
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 often than mo
st other nations has been willing to hand the tiller to an international pilot,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 which has re
duced its autonomy. The loss in autonomy through international agreements
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw-2 \f20 \fs23 has been muc
h greater over the last thirty years. It is so much greater thatAustralia would
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 not be able
to compensate by the degree of independence it would gain from becoming a
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 republic (Bla
iney, 2001, pp. 61-62). This contrasts with other member nations of the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 IASB such as
France, Japan, Germany, United Kingdom, and United States which have
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 implemented f
orward plans to expand their territorial controls in different parts of the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 twentieth ce
ntury (Dukes, 2000, p.57). According to Mackenzie (2003) New Zealand has
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 a history of
following Australia. Since Australia is committed to the adoption of IFRS, it
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw-3 \f20 \fs23 is expected
that New Zealand will follow suit.
\par
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri35 \expndtw0 \f20 \fs23 The extent of EU influence o
ver Australia in directing its decision- making is evident
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 from the exte
nt to which Australia was prepared to accept IFRS revised at the discretion
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw-2 \f20 \fs23 of EU. For i
nstance, in August 2003, when the EU did not endorse IAS 3 2 a n d I A S 3 9
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 dealing with
macro-hedging aspects of financial instruments, the IASB proposed to issue
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw2 \f20 \fs23 an Exposure D
raft (ED) for further review. The IASB informed the Australian
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 Accounting S
tandards Board (AASB) that IAS 32 and IAS 39 become IFRS 1\i First-time
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-2 \i \f20 \fs23 adoption
of International Financial Reporting Standards\i0 only if the EU endorses them
as
\plain\par
\sl-82\fs8\par\sl-240\fs24\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23

standards (AASB Action Alert 2003). Australia accepted the position taken by th
e EU
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw-2 \f20 \fs23 and IASB wit
hout question as part of its wholesale adoption of IFRS by 1 January 2005.
\par
i41 \expndtw-2 \f20 \fs23 The IASB's relationship with the US contrasts with its
relationship with Australia. 'The
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri41 \expndtw0 \f20 \fs23 Norwalk Agree
ment' memorandum of understanding signed by the IASB and FASB to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri41 \expndtw0 \f20 \fs23 represent the
US, addresses matters of high priority in setting IFRS. It has the following
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri41 \expndtw1 \f20 \fs23 four objectiv
es. First, to undertake a short-term project on the variety of differences
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri41 \expndtw0 \f20 \fs23 between US GA
AP and IFRS. Second, to remove differences between US GAAP and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri41 \expndtw-1 \f20 \fs23 IFRS through
co-ordination of future work programs. Third, to continue progress on joint
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri41 \expndtw0 \f20 \fs23 projects curr
ently being undertaken. Fourth, to encourage their respective interpretive
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri41 \expndtw-1 \f20 \fs23 bodies to co
-ordinate their activities (FASB news release, 2002). According to Alfredson
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri41 \expndtw0 \f20 \fs23 (2003), the d
elay in finalising IFRS until year 2004 is due to its pending outcome of the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri41 \expndtw1 \f20 \fs23 short-term pr
oject of IASB with FASB. The dependence of the IASB on FASB on
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri41 \expndtw-3 \f20 \fs23 decision out
comes indicates the power that the FASB has over the IASB.
\par
0 \ri52 \expndtw-28 \f20 \fs23 17
\par
{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
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31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri53 \expndtw0 \f20 \fs23 The view taken here is that
each nation represented in the IASB committee is competing
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw0 \f20 \fs23 to have a gre
ater share of influence on the IFRS by setting their implementation. Since
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw0 \f20 \fs23 the IFRS are
intended to be implemented globally, it becomes a means to promote each
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri53 \expndtw3 \f20 \fs23 nation's pref
erred method of accounting to influence the decision-making of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw0 \f20 \fs23 organisations
worldwide. This will be discussed in the next section in detail. The events
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw1 \f20 \fs23 reported abov
e in this paper reveal that Australia is a less influential member in the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri53 \expndtw0 \f20 \fs23 IASB. The EU
member nations appear to be more influential, as they together have a
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw0 \f20 \fs23 common intere
st in seeking a uniform set of accounting standards for the EU. The US,
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri53 \expndtw-3 \f20 \fs23 however, app
ears to be a more influential member than Australia.
\par
5 \expndtw-26 \b \f20 \fs23 5.
\plain\tx715 \tab \expndtw-5 \b \f20 \fs23 Imperialism and accounting
\par
\plain\sl-187\fs19\par\sl-240\fs24\par\pard\pard\sl-232 \li15 \ri45 \expndtw1 \f
20 \fs23 Imperialism is defined as the 'sufficient function of the process of in
tegrating new
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 regions into
the expanding economy and is largely decided by the various and changing
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw-1 \f20 \fs23 relationship
s between the political and economic elements of expansion in any particular
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw-1 \f20 \fs23 region and t
ime ' (Gallagher & Robinson, 1953, pp. 5-6). According to Said (1993, p. 5),
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 imperialism m
eans thinking about, settling on and controlling the land that you do not
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw-2 \f20 \fs23 possess, whi
ch is distant and lived on and owned by others. This can be achieved through
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw-2 \f20 \fs23 force, polit
ical collaboration, or through economic, social or cultural dependence.
\par
\plain\sl-97\fs10\par\sl-240\fs24\par\par\par\par\pard\pard\sl-232 \li15 \ri49 \
expndtw-1 \f20 \fs23 Imperialism is the process or policy of establishing or mai
ntaining an empire. An empire
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 is a relation
ship, formal or informal, in which one state controls the effective political
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw-1 \f20 \fs23 sovereignty
of another political society. Direct colonialism (i.e. implanting of settlements
\par
xpndtw-28 \f20 \fs23 18
\par
{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri65 \expndtw0 \f20 \fs23 on another territory) has lo
ng ended but what is seen today is its practice on political,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri65 \expndtw0 \f20 \fs23 ideological,
economic or social practices (Said 1993, p. 8). Imperialism hinges on two
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri65 \expndtw0 \f20 \fs23 principles: t
rade with consent if possible; trade with rule when necessary (Gallagher and
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri65 \expndtw0 \f20 \fs23 Robinson 1953
). It signifies the domination of one nation, or country by another (Sklar,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri65 \expndtw-6 \f20 \fs23 1999, p. 1).
\par
\expndtw-2 \f20 \fs23 The imperialists control the distant territories and inhab
itants using both 'hardware' and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-6 \f20 \fs23 'software'.
Headrick (1981, p. 18) describes 'hardware' as military technologies used for

\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 their expans
ion. 'Software' is defined as knowledge such as geography (Bell, Butlin &
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 Heffman, 1995
; Neu, 2000a) and accounting (Miller & Rose 1990, p. 9). Neu (2000a)
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw-2 \f20 \fs23 points out t
hat software is far more important to imperial rule in the present day's context
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 but has rece
ived less attention in the literature since imperialism is generally construed a
s
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 an act of for
ce. In this context, this paper argues that the control of 'software' such as
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 setting IFRS
by few nations can be conceived as a method of indirect governance, in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 contrast to p
romoting accounting techniques that are neutral and free from bias (Miller,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-3 \f20 \fs23 Hopper, & La
ughlin, 1991; Neu, 2000b).
\par
\expndtw0 \f20 \fs23 Modern imperialism contrasts with early twentieth century i
mperialism in that modern
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw-1 \f20 \fs23 imperialism
is a collection of a regimes of imperialism which are tied together by timing.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 In this conte
xt this paper argues that setting IFRS to the entire globe is an attempt to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri47 \expndtw-3 \f20 \fs23 control acco
untancy 'software' by a few developed nations. Richelson & Ball (1990, pp.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-1 \f20 \fs23 6 - 7) cite
the intelligence relationship between Australia, Britain, Canada, New Zealand,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw0 \f20 \fs23 and the Unite
d States that was forged after the second world war that continues to this
\plain\par
8 \f20 \fs23 19
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
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2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri33 \expndtw-1 \f20 \fs23 date with the formulation a
nd acceptance of the UK and USA Agreement known as UK\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri33 \expndtw0 \f20 \fs23 USA Security
Agreement or 'Secret Treaty' as an example of scattered imperialism.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri33 \expndtw-2 \f20 \fs23 Their timing
is a product of "a profound change in the international relationships" and "a
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri33 \expndtw-1 \f20 \fs23 power advant
age". This offers a concrete explanation to the rest of the world for the new
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri33 \expndtw-3 \f20 \fs23 imperialism
as unified nations of imperialism (Headrick, 1981, p. 7).
\par
\expndtw-2 \f20 \fs23 The control of the accountancy 'software' (knowledge) by i
mperialist nations promotes

\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw2 \f20 \fs23 other nations
, particularly economically weaker developing nations, to forge an
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 economically
dependent relationship with those imperialist nations. It facilitates and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 rationalises
the unequal exchanges, becomes the active agent to expropriate, and set up
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 mechanisms to
apportion them in monetary terms. The imperialists become the judges
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-1 \f20 \fs23 and adjudica
tors by having full control of the accountancy 'software' which influences
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw1 \f20 \fs23 economic deci
sions, which pertain to resource allocation, so that the behaviour and
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri38 \expndtw0 \f20 \fs23 priorities of
nations can be controlled to achieve the desired economic conditions of the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri38 \expndtw-5 \f20 \fs23 imperialist
nations.
\par
\expndtw1 \f20 \fs23 The realisation of the desired economic conditions (as disc
ussed in section 3 of this
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 paper) is nec
essary for imperial relations to exist. They relate to differential power that
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 arises from c
ircumstances where the economically weaker nation becomes so integrated
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw-1 \f20 \fs23 with a natio
n of economic power that the strategic direction and the rate of growth of the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri35 \expndtw0 \f20 \fs23 weaker nation
is governed by the economic power (Win, 1973). The imperial nation
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri35 \expndtw4 \f20 \fs23 requires the
support of other nations for its capital expansion through the
\par
\expndtw-28 \f20 \fs23 20
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri47 \expndtw-2 \f20 \fs23 internationalisation of cap
ital to exercise formal and informal authority over other nations
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri47 \expndtw-2 \f20 \fs23 (Petras & Mo
rley, 1980, p. 44; Polychroniou & Targ, 1992, pp. 62-63).
\par
expndtw1 \f20 \fs23 It is pointed out here that the economic dependency of other
nations on imperialist
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw0 \f20 \fs23 nations who c
ontrol the accountancy 'software' extends into a political dependency.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw3 \f20 \fs23 Johnson & Cay
gill (1973, p. 79) state that the political dependency in modern
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw0 \f20 \fs23 imperialism i
s guided by the principle that imperialist nations are the leaders to regulate
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw0 \f20 \fs23 professional
practice such as accountancy (Johnson & Caygill, 1973, p. 79). Historical
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri50 \expndtw0 \f20 \fs23 evidence sugg
ests that the political dependency of post-colonial nations on imperialist
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw2 \f20 \fs23 natio ns, whi
ch perpetuates after independence, is due to the colonial patterns of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri50 \expndtw-1 \f20 \fs23 subordinatio
n inherited from colonisation. This was achieved by influencing the opinions
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw0 \f20 \fs23 of elites in
those post-colonial nations because they make policies and decisions that
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri50 \expndtw2 \f20 \fs23 count within
the society (McAllister, 1992, p. 230). In relation to accountancy,
\par
\plain\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri61 \expndtw-7 \f20 \fs23 imperi
alist
\plain\tx1244 \tab \expndtw-10 \f20 \fs23 nations
\plain\tx2151 \tab \expndtw-8 \f20 \fs23 approached
\plain\tx3458 \tab \expndtw-7 \f20 \fs23 post-colonial
\plain\tx4896 \tab \expndtw-11 \f20 \fs23 nations
\plain\tx5802 \tab \expndtw-27 \f20 \fs23 on
\plain\tx6275 \tab \expndtw-8 \f20 \fs23 accountancy
\plain\tx7647 \tab \expndtw-10 \f20 \fs23 practice
\par
\plain\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri68 \expndtw0 \f20 \fs23 develop
ment and expansion to offer membership to self-selected elite so that they can
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri68 \expndtw1 \f20 \fs23 enjoy market
opportunities (Chua & Poullaos, 1998; Annisette, 2000; McNicholas,
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri68 \expndtw0 \f20 \fs23 Humphries & G
allhofer, 2004). This was further reinforced by the absence of a sizeable
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri68 \expndtw-1 \f20 \fs23 middle class
in colonised nations which was unable to offer an alternative viable basis of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri68 \expndtw-2 \f20 \fs23 accountancy
practice free from imperialist intervention (Johnson, 1973).
\par
\expndtw1 \f20 \fs23 Annisette (2000) points out that the developing Commonwealt
h virtually relies on
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri52 \expndtw3 \f20 \fs23 British-based
accountancy institutions for the training and certification of its
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri52 \expndtw0 \f20 \fs23 practitioners
, with UK based accountancy bodies training and certifying in may of those
\plain\par
8 \f20 \fs23 21
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri49 \expndtw-2 \f20 \fs23 countries. The willingness
to struggle for the accountancy qualifications of the imperialist
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw1 \f20 \fs23 nations affir
med the effectiveness of the Empire in transmitting a specific form of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 credentials a
cross distant territories. According to Briston & Kedslie (1997), similar
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri49 \expndtw0 \f20 \fs23 patterns are

also up-and-coming in emerging nations in the central and Eastern Europe,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri49 \expndtw-3 \f20 \fs23 China, and S
outh Africa where these nations are controlled by accountancy 'software' of
\plain\par
nations.
\par
\expndtw1 \f20 \fs23 Countries such as Canada and Australia were different from
other Commonwealth
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 nations in th
at they successfully negotiated to narrow their differences with UK based
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 chartered acc
ountancy bodies by seeking a royal charter or with reciprocal recognition
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 (Chua & Poull
aos, 2002). These local accountancy bodies defined, protected, defended
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-2 \f20 \fs23 and promoted
the expansion of its knowledge base (Armstrong 1993). These accountancy
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 bodies nevert
heless, established a long distance relationship between nations and the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw-5 \f20 \fs23 empire (Anni
sette, 2000).
\par
\expndtw2 \f20 \fs23 The settler colonies began to model the notions of accounta
ncy professionalism
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 originating i
n colonial power. These relatively autonomous institutions provided a loose
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 coupling betw
een the colonial power and the colony (Chua & Poullaos, 2002; Yapa,
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 2001). In cou
ntries such as Canada (Richardson, 1997), Australia and South Africa the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \f20 \fs23 colonial inf
luence was so successful that the elite local accounting associations emulated
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 their British
chartered model (Chua & Poullaos, 2002; Parker, 1989). According to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 Annisette (20
00) these professionalisation strategies of colonial accountancy bodies are
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 not due to au
tonomous local phenomena, but were a process inextricably linked to
\plain\par
8 \f20 \fs23 22
\par
{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
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0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri96 \expndtw1 \f20 \fs23 strategies employed by accou
ntancy bodies seeking to advance their position in the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri96 \expndtw-11 \f20 \fs23 empire.
\par
\expndtw-26 \b \f20 \fs23 6.
\plain\tx715 \tab \expndtw-4 \b \f20 \fs23 Post imperialism and accounting

\par
\plain\sl-187\fs19\par\sl-240\fs24\par\pard\pard\sl-232 \li15 \ri48 \expndtw-1 \
f20 \fs23 Britain is one few colonial powers of the twentieth century. The other
member nations of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 the IASB who
exercised colonial powers during that century include France, Germany,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 Japan and the
US (Dukes, 2000, p. 57). The British style of arranging professional
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 accountancy i
s rapidly changing due to technology, globalisation, reciprocal recognition
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 between diffe
rent accountancy bodies and increasing dialogue between accountancy
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 associations
(Chua & Poullaos, 2002). This paper believes that the increasing dialogue
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 between accou
ntancy associations added to the impetus behind the creation of globally
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-4 \f20 \fs23 enforced acc
ounting standards.
\par
expndtw0 \f20 \fs23 The tussle between the US FASB and the IASB to control globa
l accounting standards
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-2 \f20 \fs23 are apparent
from the following four events and activities. First, according to Zeff (2002),
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-2 \f20 \fs23 some Europea
ns firms have cited their preference for US GAAP on the basis that they are
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-13 \f20 \fs23 well organi
sed and constitute a powerful lobby. Jeff argues t h a t t h e r i g o r o u s e
n f o r c e m e n t
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-2 \f20 \fs23 in the US is
likely to be controversial and would generate stronger negative reactions than
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 in any of the
other seven countries collaborating with the IASB. This confrontational
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 climate is he
ightened by the high incidence of litigation and traditional intense lobbying
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-1 \f20 \fs23 of legislato
rs at state and federal level on the FASB. These legislators virtually assure th
e
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-5 \f20 \fs23 results for
FASB.
\par
xpndtw-28 \f20 \fs23 23
\par
{\shp
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31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
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0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-323 \li15 \ri51 \expndtw0 \f20 \fs23 Second, Ham (2002) agrees th
at the IASB is moving closer to the FASB standards than
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 vice versa. A
lthough the FASB has come under recent criticism with the collapse of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 Enron, Ham ar
gues that the Enron collapse is not significant enough to challenge the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri51 \expndtw0 \f20 \fs23 superiority o
f the FASB standards, since the US has continued to be the most successful
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri51 \expndtw-3 \f20 \fs23 capital mark
et and the most resilient economy.
\par
\expndtw0 \f20 \fs23 Third, in the recent past the US has sought to expand their
power base in the IASB by
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri69 \expndtw-2 \f20 \fs23 presenting a
significant American presence. The chair of trustees is Paul Volker, one-time
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri69 \expndtw0 \f20 \fs23 chairman of t
he US Federal Reserve. It is also widely accepted that the co-operation of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri69 \expndtw0 \f20 \fs23 the US is req
uired for truly global standards (Haswell & McKinnon, 2003; Mackenzie ,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri69 \expndtw-11 \f20 \fs23 2003).
\par
expndtw-2 \f20 \fs23 There are economically powerful nations that offer voluntar
y support to perpetuate FASB
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 standards. Ca
nada explicitly ratifies the US FASB standards. The Canadian accounting
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 standards boa
rd (AcSB) has two fundamental focuses: first, to harmonise with the US
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 GAAP by elimi
nating significant unjustifiable differences with the FASB standards;
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 second, to co
nverge with the highest quality US and international accounting standards
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri45 \expndtw0 \f20 \fs23 (Mackenzie 20
03). Canada has publicly declared their commitment to contributing to,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw-1 \f20 \fs23 and developi
ng, a reliable system of international accounting standards while recognising
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri45 \expndtw-1 \f20 \fs23 its critical
dependence on access to capital markets in the US. Lenihan and Hume (2003)
\par
\plain\sl-277\fs28\par\sl-240\fs24\par\par\par\par\par\pard\pard\sl-232 \li8160
\ri70 \expndtw-28 \f20 \fs23 24
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri57 \expndtw2 \f20 \fs23 point out those adopting the
US standards bring Canada closer in alignment with
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-2 \f20 \fs23 Americans an
d will strengthen business relationships with their biggest trading partner.
\par
expndtw2 \f20 \fs23 Fourth, the US public accounting profession represented by t
he 'big four public
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw1 \f20 \fs23 accounting fi
rms' public accounting firms is also a dominant institutional driver
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw0 \f20 \fs23 supplying acc
ounting expertise to multinational firms across nations. More than one half
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw0 \f20 \fs23 of 215 nation
s recognised by the United Nations maintain offices of 'big four public
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw-3 \f20 \fs23 accounting'
firms but they are headquartered in the US (Cooper, Greenwood, Hinnings &
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri36 \expndtw1 \f20 \fs23 Brown, 1998;
Hegarty, 1997). Their expertise shapes the culture and economics of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw1 \f20 \fs23 nations witho
ut occupying their territory, i.e. without colonisation. This expertise
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri36 \expndtw0 \f20 \fs23 provided by t
he 'big four public accounting' firms also facilitates the expansion of US
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw0 \f20 \fs23 Empire (Dwyer
& Roberts, 2004). This increases the scope for firms to not just expand
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri36 \expndtw1 \f20 \fs23 geographicall
y but to increase their range of services to further expand their capital
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri36 \expndtw-6 \f20 \fs23 (Hegarty, 19
97).
\par
\expndtw1 \f20 \fs23 This paper argues that the above four factors support the n
otion of US accountancy
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri62 \expndtw1 \f20 \fs23 'software' to
influence the decision-making of nations and firms located in other
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri62 \expndtw0 \f20 \fs23 countries. Th
e increasing domination of US accountancy 'software' enables the US to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri62 \expndtw-3 \f20 \fs23 expand their
post World War II imperialism.
\par
\expndtw0 \f20 \fs23 The North American version of imperialism has a different e
mphasis than that of the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri70 \expndtw1 \f20 \fs23 European vers
ion. The US multinational firms drive the North American version of
\plain\par
\sl-97\fs10\par\sl-240\fs24\par\par\par\pard\pard\sl-232 \li15 \ri70 \fi8145 \ex
pndtw-28 \f20 \fs23 25
\par
{\shp

ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri48 \expndtw0 \f20 \fs23 imperialism through globalis
ation. The US 'big four public accounting' firms expand
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 their firms i
n another nation for the reason of serving their existing multinational clients
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw-2 \f20 \fs23 (Cooper et a
l., 1998). This paper concurs with views expressed by Bowman (1999, p. 78),
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 that although
these multinationals retain the appearance of outmoded hierarchical firms,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 their account
ing methods, amongst other things, shape the behaviour of firms in other
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw1 \f20 \fs23 (Bowman, 1999
, p. 78). The multinational are supportive of a uniform global set of

\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 accounting st
andards (Day, 2002), but this paper argues that the multinationals would
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri48 \expndtw0 \f20 \fs23 prefer the US
accounting standards rather than IFRS since the majority of multinationals
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri48 \expndtw-6 \f20 \fs23 are US firms
.
\par
\expndtw0 \f20 \fs23 The US has been considered a post World War II imperialist
nation in terms of their
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw1 \f20 \fs23 dominance of
'hardware' imperialism admitted by several economically powerful
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-1 \f20 \fs23 nations. The
World War II wartime experiences lead Britain, Australia and New Zealand
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri57 \expndtw-2 \f20 \fs23 to sign a Pa
cific Security Agreement with the United States in 1951. The Commonwealth
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw1 \f20 \fs23 also began to
look to secure their territorial sovereignty with the assistance of US
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw1 \f20 \fs23 confirming th
e domination of the US (Smith, 1998, p. 34). The UK-USA Security
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 Agreement is
a tiered treaty in which the US is designated as the first party, with other
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-2 \f20 \fs23 nations desi
gnated as second parties, which also confirms the US as the dominant party.
\par
\expndtw-3 \f20 \fs23 The dominance of the US in relation to 'software' imperial
ism was demonstrated by two
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri53 \expndtw0 \f20 \fs23 factors. Firs
t, the US have a greater intelligence or knowledge collection capacity than
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw-2 \f20 \fs23 other UK-USA
participants to the UK-USA agreement. Second, the dominance of the US
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri53 \expndtw-1 \f20 \fs23 military amo
ng western nations allows them to exert significant influence in determining
\plain\par
8 \f20 \fs23 26
\par
{\shp

ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri60 \expndtw0 \f20 \fs23 economic priorities of other
nations making it more economical to depend on the US to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri60 \expndtw-2 \f20 \fs23 satisfy thei
r own intelligence needs (Richelson & Ball, 1990, pp. 7-8).
\par
expndtw3 \f20 \fs23 The economic domination of the US arose from three fronts: (
i) The monetary
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 arrangement n
egotiated at Bretton Woods with the concept of parity between the dollar
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 and sterling
pound as the world reserve currencies. When sterling pound was sharply
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-2 \f20 \fs23 devalued aga
inst the dollar, older sterling bloc members shifted their monetary systems to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 orient around
the dollar; (ii) The US employed overwhelming power to police the globe
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw-1 \f20 \fs23 in order to
protect international investment by upholding the private property regime; (iii)
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-1 \f20 \fs23 The burial o
f the greater part of Japanese and European industrial capacity, US industrial
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw1 \f20 \fs23 supremacy pro
moted free trade with other nations and gave consumers freedom of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-1 \f20 \fs23 choice. Free
trade leads to global action, which means an expanded market for US goods
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-1 \f20 \fs23 and services
(Davidson & Rees-Mogg, 1987, pp. 71-74). Third, only the US can afford to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 deploy the fu
ll array of modern knowledge 'software' systems for other parties. The
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 access to suc
h knowledge 'software' can only be gained through co-operation and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw-2 \f20 \fs23 exchange arr
angements with the US (Richelson & Ball, 1990, pp. 302-303).
\par
\expndtw0 \f20 \fs23 According to Silbey (1997) the US penetrated western ideals
into non-western nations
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri65 \expndtw1 \f20 \fs23 under the gui
se of globalisation. Their motives can be described as: enlightenment
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri65 \expndtw3 \f20 \fs23 narrative and
market narrative of globalisation (Dwyer & Roberts, 2004). The
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri65 \expndtw0 \f20 \fs23 enlightenment
narrative of globalisation is based on the premise that knowledge and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri65 \expndtw0 \f20 \fs23 capital shoul
d move without friction. The law must uphold property rights of owners
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri65 \expndtw-4 \f20 \fs23 developing i
deas for the 'free' movement of capital for use of scarce resources efficiently
\plain\par
8 \f20 \fs23 27
\par
{\shp
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01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
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0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri46 \expndtw0 \f20 \fs23 to raise global production a
nd capital. The excess capital imported into the US through
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw1 \f20 \fs23 the process o
f globalization is then needed to be exported into foreign markets for
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 investment, a
nd production of goods and services (Hobson, 2000, p. 53). The market
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 narrative of
globalisation is focusing on efforts to prove superiority by commanding and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 controlling s
ocieties and social property rights over command and control societies and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 socialised pr
operty rights. This empowers individuals to pursue their desires which are
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw-1 \f20 \fs23 determined b
y market supply and demand forces in relation to their desires with the least
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-3 \f20 \fs23 burden of la
ws and (Silbey, 1997). This paper takes the view that accountancy 'software'
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 is globally e
nforced via accounting standards to promote the enlightenment narrative of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 globalisation
which is the 'software' dominance of imperialism. The enlightenment
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw0 \f20 \fs23 narrative is
a precursor to promote the market narrative of globalisation which is the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri46 \expndtw-9 \f20 \fs23 'hardware' d
ominance of imperialism.
\par
expndtw-1 \f20 \fs23 It is asserted here that multinational firms are a logical
instrument with which to promote
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 globalisation
and global accounting standards are a means to propel the 'software'
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 dominance of
US. Bowman (1989), suggests the multinationals contribute to this cause
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri57 \expndtw1 \f20 \fs23 through plann
ing and coordinating productive activities, operating efficiently and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 providing a l
ow cost production and mass distribution. As Kennedy (1994) suggests, the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 progress of U
S imperialism is dependent on the locals, and their ability to adopt and a
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-1 \f20 \fs23 share cultur
e in order to take part in global exchange. According to this paper, this means
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 that accounti
ng standards are geared to alter the decision- making models of firms and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-1 \f20 \fs23 nations to f
acilitate a culture of globalisation. The change in the decision- making model
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 asserted in t
his paper, is consistent with Dwyer and Roberts' (2004) view which states
\plain\par
tw-28 \f20 \fs23 28
\par
{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
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2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri37 \expndtw-3 \f20 \fs23 that the decision- making m
odel is promoted by labelling those who embraced these ideals
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 as modern, re
alistic and reasonable, and those who don't as rigid, nostalgic and radical.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-1 \f20 \fs23 According to
Amin (2001) and Silbey (1997), US multinationals, as facilitators of global
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri37 \expndtw0 \f20 \fs23 transactions,
change the economic relations between the US and rest of other world by
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-2 \f20 \fs23 determining
what should be produced, cultural relations by restructuring work and family
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri37 \expndtw-1 \f20 \fs23 life and pol
itical relations by re-writing basic laws governing citizenry such as promoting
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri37 \expndtw-2 \f20 \fs23 individualis
m and market economy to characterise the US as the contemporary Empire.
\par
\expndtw-1 \f20 \fs23 This paper agrees with Lenin (2000, pp. 91-94) who argues
that the economic essence of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 imperialism i
s monopolise capital. According to Lenin, there are three principal types of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 monopoly. Fir
st, a monopoly which arises due to a concentration of production at a very
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 high level. T
his is due to a formation of a monopoly of capitalist associations, cartels,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 syndicates, a
nd trusts. Second, a capital monopoly seizes the important sources of raw
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 material for
highly cartelised industries in capitalist societies. Third, a capital monopoly
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw3 \f20 \fs23 exports capit
al to other nations forming spheres of influence, profitable deals,
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 concessions,
and monopoly profits. The monopoly profits enable these firms to bribe
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw-3 \f20 \fs23 certain sect
ions of the workers to the side of imperialist nation.
\par
\expndtw0 \f20 \fs23 Post World War II was characterised by the emergence of a d
ependent third world and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw1 \f20 \fs23 the construct
ion of a US dominated global capitalist economy (Cammack, Pool &
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri32 \expndtw-1 \f20 \fs23 Tordoff, 199
3). The US domination of the global capitalist economy largely comes in the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw0 \f20 \fs23 form of the o
peration of multinational firms, foreign direct investment and economic
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri32 \expndtw1 \f20 \fs23 dependence on
the US market by other nations (Annisette, 2000). The tradition of
\plain\par
8 \f20 \fs23 29
\par
{\shp
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01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
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0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri44 \expndtw-1 \f20 \fs23 American constitutionalism
and corporate liberal reform also promotes the consolidation
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 of transnatio
nal corporate powers by applying the logic of corporate reconstruction in
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 American soci
ety to the world market and corporate relations. This corporate capital
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 through forei
gn direct investment combined with multinational corporations has enabled

\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw-1 \f20 \fs23 the US to he
rald imperialism largely based on corporate enterprise. This can be explained
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw-4 \f20 \fs23 by the theor
y of 'postmaterialism' (Bowman, 1993). Therefore it is possible to assert that
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw-1 \f20 \fs23 the promotio
n of the capital market through IFRS, which promote the monopolisation of
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 capital, US d
ominance of multinationals and foreign direct investment, supports the
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw-4 \f20 \fs23 perpetuation
of US imperialism.
\par
\expndtw1 \f20 \fs23 The East Asian economic crisis provides evidence of the US
domination in capital
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 markets and h
ow promoting capital markets can perpetuate US imperialism. Johnson
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 (2000, pp. 22
6-227) and Medley (2000) point out that the financial crisis that engulfed
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw-2 \f20 \fs23 Asian countr
ies in 1997-1998 allowed the US and the International Monetary Fund (IMF)
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 to dismantle
the East Asian model of development. The then desperate East Asian
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 governments i
nvited foreigners to invest in their economies, with the weakened Asian
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 currencies dr
opping asset prices. This enabled US firms to gain access to markets and
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw1 \f20 \fs23 industry sect
ors (such as finance and telecommunication) previously protected from
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 foreign owner
ship. The reforms proposed by the IMF with the backing of the US were a
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-6 \f20 \fs23 s t r a t e
g i c a t t e m p t t o o p e n up Asian economies to international capital. The
political
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-1 \f20 \fs23 agenda was t
o overturn the East Asian model and replace it with a US inspired free trade
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw-1 \f20 \fs23 approach to
offer privilege to multinational firms. Therefore, this paper supports the view
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri40 \expndtw0 \f20 \fs23 that promotin
g capital markets through the adoption of IFRS advocates change in the
\plain\par
tw-28 \f20 \fs23 30

\par
{\shp
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01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri57 \expndtw2 \f20 \fs23 decision- making models of o
ther nations, thereby dominating them through US
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-8 \f20 \fs23 imperialism.
\par

expndtw-1 \f20 \fs23 Improving capital market flows through the adoption of IFRS
is necessary and beneficial
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 for the US to
maintain its post World War II imperialism. Within this post- imperialistic
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw1 \f20 \fs23 context, vari
ous international firms would supplement the firms that are essentially
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw0 \f20 \fs23 national in c
haracter to supersede economic, political and social firms as expounded by
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri57 \expndtw-7 \f20 \fs23 the theory o
f 'post- imperialism' (Sklar, 1999, pp. 1-19).
\par
\expndtw-26 \b \f20 \fs23 7.
\plain\tx715 \tab \expndtw-7 \b \f20 \fs23 Concluding remarks
\par
\plain\sl-187\fs19\par\sl-240\fs24\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f
20 \fs23 This paper is inclined to conclude that international harmonisation of
accounting is a
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw-2 \f20 \fs23 reinforcemen
t of the current international economic system which is largely controlled by
\plain\par
nations representing the IASB committee member nations. It is also designed
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 to maintain t
he hierarchical political and economic world order. It is a medium to
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 increase the
economic dependency of the rest of the world, in particular developing
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 nations, on t
he imperialist nations constituting the IASB committee. This increasing
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 economic depe
ndency enables these imperialist nations to widely promote their political
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 ideologies su
ch as free market trade and private ownership. The widening gap between
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 imperialist n
ations and other nations (especially economically weaker developing
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw0 \f20 \fs23 nations) make
s it more difficult for the latter to establish independent and sustainable
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri44 \expndtw1 \f20 \fs23 political, so
cial and economic development. This paper also supports the view that
\par
\plain\sl-277\fs28\par\sl-240\fs24\par\par\par\par\par\pard\pard\sl-232 \li8160
\ri70 \expndtw-28 \f20 \fs23 31
\par
{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-303 \li15 \ri76 \expndtw0 \f20 \fs23 imperialism is harmonised th
rough a collection of imperialist nations seeking to control
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri76 \expndtw-3 \f20 \fs23 the decision
-making of other nations by mandating accounting standards.
\par
i42 \expndtw0 \f20 \fs23 Although the imperialist nations constituting the IASB
committee are bound to reap

\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 significant b
enefits through the setting and implementing of IFRS by promoting their
\plain\par
\sl-277\fs28\par\pard\pard\sl-232 \li15 \ri42 \expndtw-3 \f20 \fs23 preferred 's
oftware' of accountancy, this paper argues that the US is bound to receive the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 most benefit.
This is because of four major factors. First, the US has the biggest capital
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 market to att
ract capital flows through the implementation of IFRS from other nations.
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw-1 \f20 \fs23 Second, othe
r nations have a significant dependence on the US market to sell their goods
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 and services.
Third, US multinationals and foreign direct investments enable the US to
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 increase the
level of economic dependence of other nations on the US. Although it is not
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw-4 \f20 \fs23 clear at thi
s stage whether there will be two dominant bodies prescribing the 'software' of
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 accountancy,
the IASB and FASB, the above-mentioned three factors will provide a
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw0 \f20 \fs23 powerful impe
tus for the US domination of accountancy 'software', either in its own
\plain\par
\sl-292\fs29\par\pard\pard\sl-232 \li15 \ri42 \expndtw-1 \f20 \fs23 right throug
h the FASB or through its substantial influence over the IASB. Therefore, the
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw1 \f20 \fs23 IFRS will sha
pe the economic decision- making of other nations, and subsequently
\plain\par
\sl-307\fs31\par\pard\pard\sl-232 \li15 \ri42 \expndtw-3 \f20 \fs23 perpetuate p
ost World War II imperialism.
\par
ar\par\par\pard\pard\sl-232 \li8160 \ri70 \expndtw-28 \f20 \fs23 32
\par
{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
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31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
\plain\pard\sl-323 \li15 \ri69 \fi3630 \expndtw-5 \b \f20 \fs23 References
\plain\par
\sl-82\fs8\par\sl-240\fs24\par\par\pard\pard\sl-232 \li15 \ri69 \expndtw0 \f20 \
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\par
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{\shp
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
}}}
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{\shp
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{\shp
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010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
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05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
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ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
00110806da04da03012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
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160 \ri52 \expndtw-28 \f20 \fs23 37
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