This study investigates accounting harmonization across seven Middle Eastern countries, analyzing data from 255 industrial companies from 2016-2017. By Utilizing C-index and I-index metrics, the research aims to assess the harmonization within countries and between different accounting standards adopters. The primary focus in the current research is on seven key accounting measures, with an emphasis on understanding the extent and nature of harmonization practices in a diverse economic region.

The findings reveal a variety of harmonization levels. High harmonization is evident in inventory valuation, property, plant, and equipment valuation, straight-line depreciation, and foreign currency translation, suggesting alignment with standardized accounting practices. Conversely, borrowing costs, investment property valuation, and inventory costing methods exhibit lower harmonization, attributed to the flexibility within accounting standards and regional economic conditions.

A significant aspect of the study is comparing international financial reporting standards (IFRS) adopters with local standards users. The results indicate that while IFRS generally promotes higher harmonization, it does not uniformly guarantee this across all accounting areas. This highlights the influence of local economic and industry-specific factors on accounting practices, alongside global standards.

Conclusively, the study underscores the need for aligning local accounting practices with global standards like IFRS to enhance comparability and transparency in financial reporting. It contributes to the discourse on global accounting harmonization, suggesting a nuanced approach to standardization that considers local specificities. The findings are vital for policymakers, standard-setters, and financial analysts, offering insights for achieving more uniform accounting practices worldwide.

Keywords: Accounting Harmonization, Middle Eastern Countries, International Financial Reporting Standards (IFRS), Comparative Accounting Practices.

Conference Title

Resilient Future: Bridging Innovation, Business Intelligence, and Sustainability in Modern Business

Conference Country

Palestine

Conference Date

April 17, 2024 - April 18, 2024

Conference Sponsor

Faculty of Business and Communication - An-Najah National University and the School of Business - The University of Jordan

Additional Info

Conference Website