A COMPARATIVE ANALYSIS OF AMERICAN AND FRENCH FINANCIAL REPORTING PHILOSOPHIES: THE CASE FOR INTERNATIONAL ACCOUNTING STANDARDS Ahmed Naciri and Christian Hoarau ABSTRACT Two very dominant financial reporting systems compete today in the international accounting arena: the Anglo-Saxon model of financial reporting and the continental European model. Adopted and extended by the American financial reporting system, the Anglo-Saxon model is riding the wave of world market globalization and it is consolidating its presence on the international scene. On the other hand, the European model at least in its Latin-German school strives to maintain its own international position and tries even hardly to grow beyond its own traditional boundaries. Both models, rooted in a rich history and a strong cultural environment, differ at both substantive and philosophical levels. The impact of the industrial revolution and the protestant thinking is more visible in the Anglo-Saxon financial model while the impact of law and the major wars is more noticeable in the continental European model. This paper uses the American financial reporting model to represent the Anglo Saxon Advances in International Accounting, Volume 14, pages 229-247. 2001 by Elsevier Science Ltd. ISBN: 0-7623-0799-4 229