Al- Najah National University

Faculty of economics social sciences

“Nobes Study”

Supervised by: Dr. Muiz Abu Alia.

Prepared by: Asem Mohammad Haydareh

(11716217)
Contents
Introduction:.......................................................................................................................3
Purpose:.............................................................................................................................3
Previous classifications:.....................................................................................................3
Data critique and methodology:.........................................................................................4
Methodology:.....................................................................................................................4
Classification hypotheses :................................................................................................5
Result :...............................................................................................................................5
Conclusion:........................................................................................................................5
References:........................................................................................................................7
Introduction:
One of the negative consequences resulting from globalization is the lack of a unified
international accounting system between countries and this leads to an impact on
international investment, therefore each country has a special system of accounting and
disclosure, which constitutes a barrier to trading in securities and preventing investors
from diversifying their portfolio at the international level. Therefore, in order to reduce
the impact of the difference in standards, we need to develop a set of common
accounting standards between countries. These solutions were developed by Nobis in
his study in 1983, which he applied to 14 countries in the world.

A lot of works and materials related to the classification of countries into groups
according to the methods used in preparing the financial statements have been
published recently. This step was seen as a basic step in a scientific and organized
study of society and is known as honing description and analysis.

In the late seventies, a lot of discussions were made with the aim of international
classification in accounting. Nevertheless, a set of studies such as Da Costa and Frank
were presented on a scientific principle in classification. In these studies, differences in
methods were used among the countries included in the surveys.

Purpose:
Carrying out classification of countries according to what public companies practice in
preparing financial reports, and countries were chosen from the population size that
exist in the developed western world in which measurement and evaluation are the
basis for preparing financial reports and this was done in the year 1980.

Previous classifications:
The data and general methodology for the Nair and Frank study To explain detailed
statistical methods that have not been criticized and that will be presented as follows.
Data critique and methodology:
Four data problems were observed in 1973:

 Merging important questions with unimportant questions.

 direct errors.
 Shading in the answers.
 Increase the differences between America and Britain (UK)

Methodology:
The pric waterhouse data was used by the researchers who were mentioned and they
considered this better than the previous classifications. Nerrer and Frank say that the
aim of their research is to make an experimental assessment of the international
classifications that have been proposed in the accounting literature The main problem
that results from the use of data that includes errors and has not been prepared For the
goal for which it was designed with the aim of finding solutions to these difficulties by
finding similarities with classifications in other disciplines.
There have been inany attempts in law, economics and politics (e.g. Kagan, 1955;
David and Brierley, 1978; Neuberger and Duffy, 1976; Gregory and Stuart, 1980; Finer,
1970; and Shils, 1966).

Nevertheless, it is not correct for those who set corporate and tax laws governing
accounting in these same countries in return to determine that they will follow the United
States or separate from the United Kingdom when legislating.

Classification hypotheses :
After the previous classifications were criticized for several reasons including.

 Lack of clarity in the definition of classifications.

 There is no model for comparing statistical results.
 Losing the hierarchy.
 Lack of provisions in choosing important features.

Result :
 Countries that classified the most code.
 Split states for Micro and Macro.
 Micro-countries do not care about the details and do not serve market policies
and do not care about human and animal rights, and this is often staggered by
the fact that the countries of the commune.
 Macro countries are interested in details and serve market policies and they are
concerned with human and animal rights, and often these countries are code.

Conclusion:
In the following table No. 2 shows that the testing and registration process supports the
default classification that was mentioned in this table where he prepared it two years
ago and the separation between the two groups was very clear and the groups were
divided into subcategories and after that these branches were supported in a clearer
way from table No.

It is worth noting that Nair and Frank's classification was highly consistent with a
number, but there is a fundamental difference that lies in the fact that the overall group
has not been classified.
References:

Nobes, C. (1983). A Judgemental International Classification Of Financial Reporting

Practices. Journal of Business Finance & Accounting, 10(1), 1–19. doi: 10.1111/j.1468-
5957.1983.tb00409.x