The Reflections of the International Accounting Harmonization on Emerging Economies: Jordan as an Example

Abstract

Beyond the phenomenon of international accounting harmonization and its causes, there still a debate on its reflections, implications and consequences, especially in the emerging economies. In addition, there are proponents and opponents for such a topic as it looks like a form of globalization and a rigid standardization. Therefore, it is questionable whether international standards driven by the advanced countries for a social science like accounting can be installed and are optimal for emerging economies with the Jordanian case taken as an example. With this example, it is apparent that there are ambitious steps in applying the economic reform regime on the one hand, however it lacks the large Jordanian multinational companies (MNCs), which are one of the most vocal parties in demanding a cosmopolitan set of accounting standards, on the other hand. The case of Jordan reflects an ideal situation for the use of glocalization as a possible solution for the stagnation in accounting thought and practice influenced by the extreme polarization between the proponents and opponents accounting globalization.

Keywords: accounting, Jordan, international accounting, harmonization, emerging economies, IAS, IFRS, globalization