Exploring accounting in emerging markets: The developments, challenges and opportunities

Abstract

Purpose of the study: Accounting is supposedly perceived to be the poor cousin of the function of finance - this study provides an understanding of accounting in emerging markets based on insights gained from identified publications for the period 2001 to 2020, as it relates to the developments, challenges, and opportunities.

Design/methodology/approach: A systematic literature review on accounting in emerging markets was conducted. A Scopus search of and in the article 'accounting' and 'emerging markets' in the article title was conducted and produced 39 publications for the period 2001 to 2020. There was one duplicated publication, thus 38 of the publications identified were further analysed using content analysis to gain insights on the developments, challenges and opportunities with accounting in emerging markets for the period under review 2001 to 2020.

Findings: The review established that the field of accounting is generally mature globally, however, there are continued enhancements to the accounting standards initiated and driven to keep up with the increasing global economic activity and thus maintain the value relevance of accounting information. There are a few challenges experienced with the adoption and implementation of international financial reporting standards (IFRS), especially where there are perceived or real gaps with the local accounting standards in some emerging market jurisdictions. However, there are opportunities to leverage on technology to further enhance the practice of accounting.

Originality/value: The study contributes to the body of knowledge by providing (i) an understanding of accounting in emerging markets; (ii) the developments in the practice of accounting in emerging markets; (iii) challenges and opportunities associated with accounting in emerging markets; (iv) a proposed theoretical accounting system framework; and (v) a proposed future research agenda.