"Globalization of business and commerce has highlighted the inadequacy of financial reporting and auditing in accordance with purely national standards," says International Federation of Accountants President Aki Fujinuma. "The [GAAP reports] represents another critical step toward encouraging the harmonization of international standards and ultimately, the establishment of a single global framework"

The study, which examined a group of countries representing 95 percent of the world's Gross National Product, highlights instances where a nation's requirements do not allow, or do not require, IFRS treatment. According to the report:

• Approximately one-third of the surveyed countries are showing progress in closing the gap between national and international standards. 
• Nearly half of the countries surveyed have not implemented or proposed standards to reduce the gap. 
• Most of the major differences can be attributed to a relatively small number of standards, perhaps eight in all. 
• One of the most important differences involves related-party disclosure, which is of great interest to investors and parties interested in good corporate governance.

Overall, researchers found improvement in convergence of national and international standards since last year's "GAAP 2000" report.

However, they anticipate that the differences between national and international accounting standards will continue to increase, unless standards-setters boost their efforts to keep pace with ongoing changes. They also assert that convergence will be a great task, requiring significant efforts from each country and cooperation among the government, stock market regulators, financial statements preparers, users, and standards setters.

To download a complete copy of the "GAAP 2000" or "GAAP 2001" reports, visit the International Forum on Accountancy Development Web site. Printed copies can also be obtained free of charge by contacting Hayley Mead at hayleymead@uk.eyi.com or +44-207-951-8773.

-- By Christina Brune