Harmonization of Accounting Standards

As there has been a tremendous growth in the market place with the existing news report formation practices, this leads us to app arnt motion why do we remove harmonization of International accounting standards, what be its advantages and what are the barriers that blockade 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 worldwide economy and it has touched the entire business world. For instance, todays spherical partnership may have more than one headquarters, and its production and scattering facilities are plausibly scattered throughout the world. Commodity prices, entertain rates and property exchange values have make out internationally associate -- with the result that governm ents 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 manage; 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 consider the fin ancial statements of the foreign companies w! hos shares they might want to buy.(Iqbal, Melcher and Elmallah 1997) Financial breeding is a form of a language. And if the language of financial information is to be put to use, so that investment and credit decisions tolerate 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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