Date of Defense

Spring 4-20-2005



First Advisor

Kathleen Sinning, Accountancy

Second Advisor

Jerry Kreuze, Accountancy

Third Advisor

David Rozelle, Accoutancy


acquisition costs, replacement costs, market price


Increasing globalization and conflict among differing accounting standards leads to the need for international standards. The International Accounting Standards Committee formed in 1973 to spearhead the effort, replaced by the International Accounting Standards Board in 2001. Convergence of accounting law is frustrated by national interests and associated high-costs. Examined is the difference in asset valuation methods used in the United States, which favors fixed assets or historical cost, and Germany, which uses fair value. Historical value and fair value are contrasted; historical value does not take into account current economic factors but a figure is easily obtained. Fair value explores current economic conditions and is more relevant in a financial statement, but is difficult to determine. Harmonizing these differences is a critical step in economic integration and globalization.

Access Setting

Honors Thesis-Campus Only