“Economic and Normativa Pressures as Drivers for the Adoption of International Accounting Standards in Finland Since 1976”

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Report of the paper “Economic and Normativa Pressures as Drivers for the Adoption of International Accounting Standards in Finland since 1976”

This article try to give us a view of the situation of the international accounting standards into the Finnish economy and how these standards have change the Finnish accounting practice, taking of consider data of the latest 20 years. Also we have to take into consider the fact that the finnish accounting regulation model the govertment have a highly control and the changes of the regulation have to pass a parliamentary process, which depending of the extent of the changes the process will be in one way or in another.

About the external influences, the Finnish accounting system were mainly influenced by Nordic and German ideas. And as special issues of the Finnish model we have the fact that the government gives special taxation to those companies which potence their investment form their profits instead give them to the shareholders.

Another special fact could by financiation by debt of the finnish companies which gives to the banks a very heavy role into the economy, sometimes having better information about the company than the shareholders.

The erosion of this model started in the 1970s because of the internationalization of the finnish economy wich was accelerated by the collapse of the soviet union in the 1980s and the integration of Finland into the EU. Two reforms were written because of the previous factors and different pressures groups into 1992 and 1997 taking into consider EU Directives and also IAS’s.

These reforms try to follow mainly the EU Directives but there are two things were the effect of the IASs appears, into the areas that are not covered but the EU Directives and the IASs as the principal source of justification where the changes are demanded.

So the thing is that IASs on…...

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