Financial Reporting, Regulation, and Governance
IASB, FASB, international accounting, harmonization, rules vs. principles approach
The article is a satire on Tolkien’s Lord of the Rings. It provides, in a humorous style, an analysis of the rules vs. principles approach debate to international accounting harmonization. Although the debate is often referred to in the literature, explanations of the actual nature and dimensions of the controversy are weak. By placing the debate in a mythical but familiar setting, the authors are able to explain in simple terms the nature of the controversy, its political dimensions and the potential relevance for developing countries. By representing countries and their roles with individual characteristics from the Lord of the Rings, the article offers a fresh perspective in a highly readable style.
Ong, Audra and Hussey, Roger. (2005). The lord of global standards: The twin towers. Financial Reporting, Regulation, and Governance. Financial Reporting, Regulation, and Governance, 4 (1).