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 exact harmonisation of International accounting standards, what are its advantages and what are the barriers that resist harmonization? Although accounting may be the language of business, a common language has never been essential -- at least(prenominal) 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 worldwide economy and it has touched the entire business world. For instance, todays orbiculate society may have more than one headquarters, and its production and scattering facilities are plausibly scattered throughout the world. Commodity prices, liaison rates and property exchange values have take internationally associate -- with the result that go vernments 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 region; 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 s shado wer the financial statements of the foreign ! companies whos shares they might want to buy.(Iqbal, Melcher and Elmallah 1997) Financial schooling is a form of a language. And if the language of financial schooling is to be put to use, so that investment and credit decisions can 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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