International Accounting Harmonization
Harmonization of International Accounting Standards | Bartleby
Accounting Standards are the reliable statements of best accounting practices issued by recognized expert accountancy bodies relating to various aspects of measurements, treatments and disclosures of accounting transactions and events, as related to the codification of Generally Accepted Accounting Principles GAAP. This report presents harmonization of accounting standards, a brief history, and the achievements so far and some challenges faced by the organizations such as the International Accounting Standard Committee IASC that are pursuing harmonization of accounting standards. Many authors have put together different definitions for accounting harmonization in various ways. It would seem not an easy word to define, as neither the European Commission nor other organs of the commission have explicitly defined the concept of accounting harmonization Christopher Nobes, Some have even complicated the whole concept, by attempting to substitute harmonization with standardization, as if to mean that the process is the same, rather than making it more compatible.
In an increasingly global business environment, issues such as how companies account for their relevant financial positions in several jurisdictions gain higher importance. Many companies are international in their range with a number of different subsidiaries in multiple jurisdictions making the interpretation of accounts specifically difficult. Accounting specifications atlanta divorce attorneys country are developed with the backdrop of that country's individual interpersonal and economical circumstances, which results in a range of differing requirements being developed over the globe . As an outcome, it is very difficult for accounts to be read effectively and make ideal financial decisions on investment by entities from other jurisdictions. Contrasting shows and consolidating accounts without at least a amount of international harmonisation would verify very hard, if not impossible.
In a capital market, it is important to have useful financial information to allow investors to make decisions. Financial information must be consistent and transparent. Being transparent allows investors, creditors and the market to properly evaluate a business entity. Having it transparent and easy to understand is to increase the confidence of markets fairness and the companies to use to evaluate the effectiveness of management and to make the right decision when a problem may arrive. This is….