Question

in recent years, there has been pressure from a variety of groups for pursuing global accounting harmonization. who are these groups, and how do they stand to benefit from accoutning harmonization?

DO NOT ANSWER WITH PICTURED OF SOMETHING HANDWRITTEN. I PROMISE YOUR HANDWRITING IS NOT AS GOOD AS YOU THINK.

Answer 1

Global accounting harmonization-Providing the common standard for all the groups who invest and work internationally and it provide free flow of capital .

GROUPS THAT EMPHASIS ON HARMONIZATION

-Investor Group

- Multinational companies

- Regulatory Bodies

- Stock exchanges (security industry)

- Developing Countries

Benefits that they get from harmonization

- Helps to produce comparable data for cross border.

- Help in flow of capital with standard accounting system because different accounting system creates problem.

- Some of the developing countries have lack of resources to develop accounting system for them.

- MNCs have to maintain financial reports with different accounting system according to there countries brand which is costly.

- For small companies expansion become easier

- Investors now a days investing in different companies across border with harmonization it's become easy for them to analyse companies financial position.