Accounting development and international financial reporting standards in small island economies: The case of Mauritius between 1960 and 2008

Pran Krishansing Boolaky

doi:10.1108/20421161211196102

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Journal of Accounting in Emerging Economies

ISSN: 2042-1168

Online from: 2010

Subject Area: Accounting and Finance

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Accounting development and international financial reporting standards in small island economies: The case of Mauritius between 1960 and 2008

Document Information:
Title:	Accounting development and international financial reporting standards in small island economies: The case of Mauritius between 1960 and 2008
Author(s):	Pran Krishansing Boolaky, (Department of Accounting, Finance and Economics, Griffith Business School, Griffith University, Brisbane, Australia)
Citation:	Pran Krishansing Boolaky, (2012) "Accounting development and international financial reporting standards in small island economies: The case of Mauritius between 1960 and 2008", Journal of Accounting in Emerging Economies, Vol. 2 Iss: 1, pp.4 - 29
Keywords:	Accounting development, Financial reporting, IFRS, International accounting, International standards, Mauritius
Article type:	Case study
DOI:	10.1108/20421161211196102 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Acknowledgements:	The author would like to acknowledge the valuable comments and suggestions made by the journal reviewers, as well as Professor Christopher Nobes (University of London), Associate Professor Ven Tauringana (Bournemouth University), and Professor Chandrasekar Krishnamurti (University of Southern Queensland).
Abstract:	Purpose – The purpose of this paper is to examine the accounting development process and international financial reporting standards (IFRS) in small island economies (SIEs), with particular reference to Mauritius. SIEs are different from large economies in terms of economic and political dependence, colonial influences and international pressures, as well as vulnerability to natural shocks. Design/methodology/approach – This paper uses Briston's Accounting Evolutionary Theory (BAET) and the Transcendental Stage of Accounting Development (TSAD) proposed by Boolaky and adopts a descripto-explanatory research tradition to explain accounting development and IFRS in Mauritius. Data on key development economic policies between 1960 and 2008 are collected and analysed using secondary sources, whereas data related to colonisation and basis of legal system are archived from the National Library. Findings – Mauritius has experienced little difficulty compared to other countries in the African region such as Madagascar, Mozambique, Angola, Swaziland etc. in its accounting development process because it is used to the Anglo-Saxon accounting system, has adopted the phase-by-phase development process, has an adequate supply of professionally qualified accountants and made IFRS compliance mandatory in 2001 through the revised Companies Act, 2001 and through the revision of other related legislations. As regards IFRS, Mauritius has a legal, political, business and economic environment conducive to sustain IFRS. Research limitations/implications – This paper applies BAET to examine accounting development from basic book-keeping to IFRS adoption in Mauritius. It also explains that there is a transcendental stage of accounting development which BAET has not taken into consideration. Originality/value – There is no previous study which has used BAET and TSAD to examine accounting development and IFRS in small island jurisdictions. Previous studies have mostly focused on large economies. This paper also provides a basis for future research in similar jurisdictions.