Influence of transnational economic alliances on the IFRS convergence decision in India—Institutional perspectives

Abstract

Influence of Transnational Economic Alliances on the IFRS Convergence Decision in India-Institutional Perspectives Highlights  Decision-making for IFRS convergence within nation states significantly influenced by traditional trade and economic alliances.  Influences exerted through transnational policy networks between institutional fields  Impact of influences determined by power balance between local and transnational actors embedded in different institutional fields.  Indirect effect of US delays in IFRS convergence on India as a result of cross country economic ties.

Implementation of the international public sector accounting standards in Europe. Variations on a global theme

“…Here, the issue of "adaptation" or "translation"i.e. implementing (global) ideas and standards in a certain political/administrative contexthas been inspiring research in both the public and private sectors (Albu et al, 2014;Albu et al, 2020;Jorge et al, 2019;Krishnan, 2018). Global standards and their national/local translations represent an example of a form of "glocalization", which is characterized by the "mutually constitutive character of the global and the local" (Albu et al, 2014, p. 85).…”

Institutional theory and IFRS: an agenda for future research

“…This need arises due to the authority of specific groups (e.g., professional associations) that confer legitimacy on the new practices. In turn, these negotiations help to establish new power positions and the features of the resulting accounting system (Alon & Dwyer, 2016;Guerreiro et al, 2015;Hyvönen et al, 2009;Krishnan, 2018).…”

“…Power disparities among different actors involved in implementing IFRS help to explain why some actors are successful in getting their views translated into action (e.g. corporate lobbyists or professional associations) and others are not (Krishnan, 2018;Guerreiro et al, 2015). This matter has not been investigated extensively.…”

IFRS in India in the context of developing the profession

“…For example, the idea of transnational communication helps analyse interactions between global and local actors involved in the decision-making process (Djelic and Sahlin-Andersson, 2006;Samsonova, 2009;Krishnan 2016). The concept of resource dependencies between decision-makers (Casciaro and Piskorski, 2005;Djelic and Quack, 2010) enables further analysis of such negotiations through the lens of power imbalance between actors (Krishnan, 2018;Mir and Rahman, 2005). Power dynamics between decision-makers have been explored by analysing the institutional agendas of actors representing different institutional fields including India (Phillips et al, 2000;Krishnan, 2018).…”

“…Extant literature on convergence with international accounting standards can be broadly classified into four categories: drivers of convergence with international accounting standards (Briston 1978;Abdelsalam and Weetman, 2003), benefits and disadvantage of convergence with international accounting standards (Biddle and Saudararan, 1991;Peng and Bewley, 2010), compliance with international accounting standards ( Weetman et al, 1998;Tsalavoutas, 2011) and convergence as a decision making process (Mir and Rahman, 2005). Some research on the last of these has been undertaken in relation to India (Krishnan, 2018) but the other strands of research have not been undertaken in relation to India. Several reports on the potential effects of IFRS adoption of financial statements in India have been published by Big 4 audit firms.…”