The Need For Harmonising Accounting Standards.

International capital marketplaces demand fiscal statements that can be quickly understood and comp bed irrespective of the inelegant of seed of the companies concerned. Investors and their advisers, and financial analysts exigency financial statements that are comparable from country to country so that they can compare the financial statements of enterprises in various cities. Instead, they are often confused and even overwhelmed by the diversity of several(predicate) national reporting requirements. Several reasons exist for wherefore there are differences in bill prototypes among different countries. both(prenominal) of these include the complexity of accounting in individual countries, the sparing and legal fashion model of the countries themselves, cultural differences among nations and from their historical developments, amongst others (Gottlieb 1996). We like a shot have a international economy and it has affected the stallion world. For instance, todays g lobal corporation may have to a greater extent than adept headquarters, and its production and distribution facilities are probably scattered end-to-end the world. Commodity prices, interest grade and currency exchange value have become internationally linked - with the result that governments well-nigh the world are progressively supporting harmonisation of accounting practices and national policies.

Harmonisation is necessary because standard national financial statements are virtually useless; financial markets in more regulated countries are threatened with a loss of market share; and multinational corporations must mug up doubled reports for different nations they do business i n (Nobes & angstrom; Parker 2004). there i! s a need for harmonisation of accounting standards in score to help the foreign investor to understand the financial statements of the foreign companies whose shares they might want to buy. Financial information is a form of diction. And if the verbiage of financial information is to be put to use, so that investment and credit decisions can more readily be taken, it should non all be intelligible, it should also be comparable... If you want to suck a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay