What is it about?
Extractive industries have historically used diverse accounting practices which led to lack of comparability and consistency of accounting figures produced by these industries. Despite the many attempts made by accounting and regulatory bodies to standardise this diverse practice lack of harmony continues to date. We propose an accounting harmonisation framework for the extractive industries. Our framework offers a good opportunity to enhance comparability of accounting figures of the extractive industries, thus enhance decision-making usefulness. Hafez Abdo: hafez.abdo@nottingham.ac.uk
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Why is it important?
Accounting by extractive industries have historically suffered lack of consistency and comparability. Investing communities find it difficult to make investment decisions in extractive companies without help of specialists, such help does not come cost-free. Therefore, harmonising the diverse accounting practice by extractive companies is crucial for investment decisions
Perspectives
This study is one of the few studies that addresses the historical diversity in accounting practices by extractive industries and offers a pathway for harmonising this inconsistent practice. One of its recognisable strength is that the study offers a historical review of regulations for extractive industries and discusses the attempts made by regulatory bodies to harmonise and standardise the diverse practice. The study also discuses the role of IFRS 6 in standardising accounting by extractive industries.
Hafez Abdo
University of Nottingham
Read the Original
This page is a summary of: Accounting practices and regulations for extractive industries: a framework for harmonisation, Journal of Financial Reporting and Accounting, September 2023, Emerald,
DOI: 10.1108/jfra-07-2023-0425.
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