The Degree of Determination of National Accounting Systems - an Empirical Investigation

Comparability represents an important quality in a national accounting system if we are to assess the intensity of capital market information. Assuming that a high level of regulation makes it easier to compare financial reports an index is established that measures the national degree of determination of financial measurement. The findings are based on actual data on accounting regulations of 14 national systems and the IASC. Three groups of different degrees of regulation can be identified, which are compared to the results on disclosure regulation in Cooke/Wallace. An analysis of results indicates that the foundation of new standard-setting bodies seems to be important to improving the national system.