iranian gaap and ifrs: the history and current status of ias/ifrs convergence process in iran

this study attempts to compare and highlight the major differences between international accounting standards (ias) and international financial reporting standards (ifrs) with national accounting standards (nas) in one of the developing nations, iran. over the past two decades, the iranian accounting standards setter, audit organization, has decided to eliminate the differences between ifrs and nas as a part of its convergence and harmonization project. in 2011, the audit organization decided that ifrs implementation would be permitted for all listed companies. the primary purpose of implementing ifrs is to enhance the international comparability of financial reports, which would attract more foreign investors to participate in the iranian capital market, improve the efficient allocation of resources and boost the competitiveness of the market. in spite of her announcement, iran has not supported ifrs. the purpose of this paper is to provide possible reasons for non-adoption by highlighting some important socioeconomic factors that are likely to influence the accounting environment in iran. the main question we try to answer in this study is: to what extent is iranian gaap congruous with ifrs?