International accounting regulations: Standardization, harmonization, convergence

The creation and application of accounting standards (International Accounting Standards (IAS), International Financial Reporting Standards (IFRS), American Generally Accepted Accounting Principles (GAAP)) that would have universal acceptability was the guiding idea of the most important accounting authorities when they started the process of defining and adopting accounting rules and procedures (standards). However, the existence of at least two, more or less opposing, powerful professional associations (the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB)) has resulted in their disagreement on many issues. There have been attempts to equalize the positions of the mentioned associations or, at least, bring them closer to the procedures called harmonization and/or convergence. It seems to us that the aforementioned procedures did not have a strong enough impact on overcoming the differences, which, to be honest, have been reduced but still exist. Using the example of standards that deal with or have dealt with business combinations (IAS 22, IFRS 3, generally accepted accounting principles), we will try to explain the efforts that have been made and the results that have been achieved in the process of harmonizing and converging the rules and procedures that ensure a fair and objective way presents the financial position of the entity that is created by merger, acquisition or takeover of the so-called target companies. Of course, we will not leave out the explanation of the differences that (still) remained and for which we express doubt that they will be overcome in the foreseeable future.