'Harmonization of International Accounting Standards '

' door\n\nAs in that respect has been a horrific growth in the market transport with the existing invoice practices, this leads us to interrogative why do we need harmonisation of Inter case method of invoice standards, what be its advantages and what atomic number 18 the barriers that hinder harmonisation? Although accounting whitethorn be the manner of speaking of line of work, a mutual spoken language has neer been needful -- at least as long as the world saving consisted of a educate of more or less clear national economies.\n\n(Mednick 1991) (Cited in: www.wetherhead.cwru.edu) This, however, is no prolonged true. We now take for a world(a) economy and it has stirred the entire job world. For instance, todays global corporation may wealthy person more than wizard headquarters, and its production and dispersion facilities ar in all likelihood scattered end-to-end the world. Commodity prices, elicit rates and specie exchange set have induce world- widely conjugated -- with the result that governments well-nigh the world are increasingly bread and butter harmonisation of accounting practices and national policies. (Walters) (Cited in: Bisgay and Jayson 1989) harmonisation is necessary because standard national pecuniary statements are virtually unreal; fiscal markets in more regulate countries are peril with a deprivation of market destiny; and multinational corporations moldiness prepare doubled reports for different nations they do business in. (Nobes and Parker 1991) (Cited in: http://ecocomm.anu.edu.au) There is a need for harmonisation for accounting standards in point to table service the inappropriate investor to interpret the financial statements of the irrelevant companies whos shares they might extremity to buy.(Iqbal, Melcher and Elmallah 1997) Financial training is a physical body of a language. And if the language of financial nurture is to be border to use, so that investing funds and credit de cisions green goddess more quick be taken, it should not only be intelligible, it should also be comparable.\n\n(Belkaoui 1994) These refreshing purlieual factors of the global economy, the worldwide mvirtuosotary system, the multinational Corporation and foreign direct investment create an environment in which business transactions, their conduct, measurement and disclosure, takes new and distinctive formula that call for a specific accounting sub moderate or the harmonisation of accounting practices.\n\nAdvantages of Harmonization\n\n(Turner 1983) The greatest hit that would flow from harmonization would be the equality of international financial information. Such equality would eliminate the present-day(prenominal) misunderstandings about the dependableness of foreign financial statements and would remove one of the most central impediments to the flow of international investment. (Choi, Frost and small-scale 1999) Harmonization would...If you deprivation to get a f ull essay, order it on our website:

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