Harmonization of Accounting Standards

As there has been a tremendous growth in the market place with the living news report frame practices, this leads us to app atomic number 18nt inquiry why do we aim harmonisation of International news report regulars, what argon its advantages and what are the barriers that impede harmonization? Although accounting may be the language of business, a common language has neer been essential -- at least(prenominal) as long as the world economy consisted of a set of more than(prenominal) or little distinct national economies. (Mednick 1991) (Cited in: www.wetherhead.cwru.edu) This, however, is no yearlong true. We outright abide a international economy and it has touched the perfect business world. For instance, todays orbiculate society may have more than one headquarters, and its production and dissemination facilities are plausibly disjointed throughout the world. Commodity prices, lodge in rates and property exchange values have flex internationally associate -- with the bequeath 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; fiscal markets in more regulate countries are peril with a loss of market packet; and multinational corporations must work up 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 enact to help the foreign investor to see to it the financial statements of the foreign companies whos shares they big businessman want to buy.(Iqbal, Melcher and Elmallah 1997) Financial data is a form of a language. And if the language of financial study is to be put to use, so that investment and credit decisions burn 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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