Convergence of accounting systems through the lens of accounting theory and harmonization paradigms

Introduction. Contemporary research in international accounting lacks a thread linking the fundamental principles of accounting science to the key purpose of the accounting system - to promote the efficient allocation of capital by providing reliable and relevant information. This has led to the fact that accounting infrastructure focuses more on the interests of transnational companies, accounting standard makers and, in general, regional zones, which took advantage of the idea of global convergence for the sake of personal benefits, rather than on public purposes. Purpose. The aim is to show that the existing notions of global convergence of accounting systems are untenable and should be revised. To achieve the latter, the paper characterizes the nature of convergence with accounting theory and harmonization paradigms. Materials and Methods. The work is theoretical; traditional scientific methods are used: a dialectical method of scientific cognition, a method of collecting theoretical and regulatory-legal information, a method of formalization, as well as analysis, synthesis, observation, and comparison. Results. The standards are perceived to be the benchmark of quality with no deductively-derived regulatory grounds in accounting science. This automatically gives rise to many contradictions and inconsistencies in understanding and applying existing accounting rules/principles. IFRS or US GAAP regimes in no way solve this problem, since there is no other benchmark. To solve this problem, it is necessary to resume the development of regulation-determined accounting, while empirical studies should focus on confirming or refuting regulation-driven theories and hypotheses. By now, there is no clear understanding of how the accounting infrastructure should function within the boundaries of the global and regional paradigm. Regional areas, such as the European Union, use the established system for their own personal interests and fight for the dominance of their own paradigm. Conclusions. The cause-and-effect mechanism for the accounting determinants still remains unresolved. This defines the prospects for future research on the institutional design of the accounting system within the boundaries of macro and mega levels.