Harmonization of world accounting standards is viewed by many accountants, analysts, standard setters, and others as...

Harmonization of world accounting standards is viewed by many accountants, analysts, standard setters, and others as being among the most important issues facing business throughout the world. Advocates of harmonization seek to establish a common set of international accounting and reporting standards. However, such a task has proven formidable.

Identify factors that would hinder the process of harmonization of accounting standards.

Please provide a reference if possible.

Expert Solution

Harmonization of Accounting standards is necessary to bring unity in global reporting of financial statements, thereby making them easily measurable and comparable.

Certain difficulties that can hinder process o harmonization include:-

? Issues of incentives – the various factors which might encourage or discourage national decisionmakers from their adoption.

? Issues of regulation – regulatory challenges in their adoption.

? Issues of culture – challenges arising from cultural barriers in their adoption and implementation.

? Issues of scale – implementation barriers associated with the relative costs of compliance for small- and medium-sized entities and accounting firms.

? Issues of understandability – their complexity and structure.

? Issues of translation – the ease of their translation and the resources available to undertake the translation.

? Issues of education – the education and training of students and professional accountants in the international standards

Reference:- http://www.cimaglobal.com

ekkarill92 answered 1 year ago

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