Harmonization of Accounting Standards

As there has been a tremendous growth in the market place with the existing news report arrangement practices, this leads us to app atomic number 18nt motion why do we hold harmonisation of International accounting standards, what ar its advantages and what are the barriers that handicap harmonization? Although accounting may be the language of business, a common language has never been essential -- at least 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 globular economy and it has touched the entire business world. For instance, todays international slew may have more than one headquarters, and its production and dispersal facilities are plausibly scattered throughout the world. Commodity prices, have-to doe with rates and property exchange values have call on internationally associate -- with the resul t 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 set countries are peril with a loss of market apportion; 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 find the financial statements of the foreig! n companies whos shares they might want to buy.(Iqbal, Melcher and Elmallah 1997) Financial info is a form of a language. And if the language of financial cultivation is to be put to use, so that investment and credit decisions coffin nail 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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