An analysis of the problems and obstacles to global accounting harmonization

Traces the history of efforts to harmonize global accounting and presents a study analysing obstacles to it, using multidimensional scaling. Illustrates the environmental influences on global accounting, groups 37 factors obstructing harmonization into economic, social, political/legal and cultural groups; and assesses their impact in both developing and industrially developed countries (IDCs). Finds that political, economic and social variables create more difficulties for IDCs, but that cultural factors affect both groups equally. Displays the results graphically, discusses them further and calls for extended research to explore this “great challenge to the accounting profession”.