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RESEARCH PRODUCT

Economic and normative pressures as drivers for the adoption of International Accounting Standards in Finland since 1976

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description

This paper deals with the internationalisation of Finnish business life and the attempts to introduce and apply international accounting standards (IASs) in Finnish accounting practice before the latest developments at the EU level in 2002. The internationalisation of business life creating economic pressures for changes is illustrated. Analysis of four accounting issues is made in order to exemplify how IASs have affected Finnish accounting legislation and practice. The results of the analysis indicate that the effect of IASs has been notable but secondary because of the implementation of the EU Directives in Finnish accounting legislation in the 1990s. IASs have not caused any drastic changes in accounting practice as their requirements have been written as alternatives in legislation. This approach has provided a possibility to large, listed companies to produce financial accounting information in line with the principles of IASs. In the introduction of IASs there have been political aspects when justifications for the national model and for the international orientation have been presented.