The accounting harmonization

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[...] This will have added cost of complying with foreign markets, which cannot be possible if they impose domestic rules on foreign companies. Some countries who have yet not developed their accounting system will save lots of money and time by implementing international standards as their national GAAP. Further government in developing countries will take benefits of this international harmonization as they will find it easier to understand and control the operations of multinational companies. Many businesses wishing to use IAS for all these reasons reviewed above are prohibited from doing so by national law thus companies can choose to publish IAS financial statement as the supplement to national reporting but the cost and confusion resulting from this dual reporting still severely limits the use of IAS. [...]

[...] Another problem with international accounting standards is different countries use financial statements for different reasons. Purpose of the reports may range from investment, decision-making and managerial control to taxation, social control and national economy planning (Choi and Mueiler P 473). Therefore, if the predominant purpose of financial reporting may vary by country, it seems reasonable that the reporting should vary as well (Nobes and Parker P 72). Because different countries have different objectives, the IASC is often criticised for being ineffectual and too concerned with technical conformity. [...]

[...] The accounting harmonization Introduction Accounting is a way for communicating economic information. An economic language work differs from country to country. Accounting terminology usually expresses the adopted meaning within that particular culture. As contacts increase across national borders people gradually use that language outside its culture, misunderstanding will follow as the object is between the sender and receiver. This problem affects the accounting standards themselves. The process has a way to go to make financial statements readily comparable because the current status of things is that greater internationalization of accounting system will be more or less beneficial for the profession throughout practioners and end users of published accounts. [...]

[...] The benefits of International accounting When differences persist within countries, then there is no comparable financial reporting. Besides, some benefits of international accounting will be considered under three groups: the preparers (business entities), users (investors and analysts), Stock exchanges and regulators. First of all, lets see what could be the benefits for the business entities. According to Ian Wright (2002), business leaders across the European union are demanding their rights to use international accounting standards as soon as possible because of its greater comparability and transparency of corporate reporting and providing a key plan for single European capital market. [...]

[...] Conclusion The adoption of international accounting standards in 2005 is probably the most significant event that has affected reporting in many years. The globalization of market is becoming important every year and almost all large corporation now operate at an international level. So a greater internationalization will be more beneficial for preparers, users, stock exchanges and regulators because they should easily now compare the statement of one company to a statement of another company, which could avoid the cost associated with making numerous sets of reports to comply with each country's standards as re-computing figures to make them more comparable. [...]