Harmonization of Accounting Standards

As there has been a tremendous growth in the market place with the existing news report establishment practices, this leads us to app bent motion why do we hold harmonization of International accounting standards, what are its advantages and what are the barriers that stay harmonization? Although accounting may be the language of business, a common language has never been essential -- at to the lowest degree as long as the world economy consisted of a set of more(prenominal) or less distinct national economies. (Mednick 1991) (Cited in: www.wetherhead.cwru.edu) This, however, is no yearlong true. We now abide a orbiculate economy and it has touched the entire business world. For instance, todays globular flowerpot may have more than one headquarters, and its production and diffusion facilities are plausibly scattered throughout the world. Commodity prices, use up rates and property exchange values have buy the farm internationally associate -- with the result that governments around the world are increasingly supporting harmonization of accounting practices and national policies.

(Walters) (Cited in: Bisgay and Jayson 1989) Harmonization is necessary because standard national monetary statements are virtually worthless; financial markets in more regulate countries are peril with a loss of market conduct; and multinational corporations must prepare multiple reports for different nations they do business in. (Nobes and Parker 1991) (Cited in: http://ecocomm.anu.edu.au) There is a need for harmonization for accounting standards in order to help the foreign investor to come across the financial statements of th! e foreign companies whos shares they might want to buy.(Iqbal, Melcher and Elmallah 1997) Financial entropy is a form of a language. And if the language of financial instruction is to be put to use, so that investment and credit decisions advise more readily be taken, it should not only be intelligible, it should in addition be comparable. (Belkaoui 1994) These new environmental factors of the global economy, the...If you want to fit a full essay, order it on our website: OrderCustomPaper.com

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