International convergence of financial reporting standards and accounting modernization in Germany

This study examines the implications of globalization of financial reporting standards, focusing on issues related to the adoption of International Financial Reporting Standards (IFRS) in Germany. The thesis questions the simplistic assumption used to promote international convergence of financial reporting standards that the worldwide adoption of IFRS will automatically lead to comparability in financial reporting. It argues that unique social, political, economic, and cultural environments in countries are likely to undermine the consistent interpretation and application of IFRS by companies across countries. The thesis shows that language may also be acting as a constraint in achieving the objectives of accounting convergence.