A step towards global acceptance of IAS/IFRS accounting standards: Proposal of a new principle for Islamic finance

The relatively recent widespread diffusion of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) has generated a series of consequences which were the subject of fruitful research and studies, both in the accounting profession and in the process of accounting harmonization (Camfferman, Zeff, 2006). In this respect, the aim of this article is to focus on analysis of the acceptance and harmonization process of these standards in countries with different accounting traditions and institutional conditions. Islamic countries are particularly involved in this new process, and the uptake of these standards in these areas is among the objectives of the IAS/IFRS Board. In 2010, the International Accounting Standard Board (IASB) created an agenda consultation to gather views from all those interested in financial reporting. In addition, respondents were also asked to comment on the priority of individual projects regarding the development of the IAS/IFRS over the next three years, and on the overall strategic direction of the new standards, including also a focus on Islamic financial accounting. In the current article, the logic of IAS/IFRS Agenda consultation 2010- 2013, created to support the development of financial reporting standards and facilitate widespread acceptance and adoption, is examined. Furthermore, the principal characteristics of Islamic accounting are described in order to understand how to achieve better convergence with new IFRS. Finally, the interest of Islamic finance and industry in accounting standards is discussed, together with the ongoing path towards convergence.