Harmonization

Argument Against Harmonization As stated in the book, International accountancy: A User Perspective, harmonization is defined as the ferment by which differences in financial reporting practices among countries are lessen with a object of making financial statements more parallel and decision-useful across countries. Harmonization would require that all countries comply with an world-wide set of standards. There has been a large debate everywhere the need for harmonization ever since the 1960s and still continues to this reconcile day. Many organizations have emphasized this need bringing or so several attempts at constructing an international set of standards. All of these were abortive! One reason why there is such a controversy over this matter is because even though faculty is the goal, harmonization is not practical. While harmonization forget get many large global corporations, it forget in period of play actually do more harm than good to the crushed businesses. For example, in developing countries where there is little to no ferocity on the accounting profession, harmonization will be costly. Accountants will be obligated to pursue a higher reproduction to fulfill the requirements that will follow the standardization of accounting.

This will be costly to the individuals who must pay for the schooling and also to the companies who will be compelled to pay them higher salaries. Another consequence for subatomic establishments who only require simple accounting is the intricacy that would be involved in international standards. Harmonization also takes by a sense of nationalism for some people. The main goal of using an international set of standards is so that adornors who wish to invest in companies in other countries can do so without spending as much time and research into translating other countrys accounting standards. These investors could be placing their money into stocks in companies in their birth country and helping to stimulate their own economy.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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