Convergence and Harmonization of Accounting Principles

July 2022 | 9 pages | ID: C7DDA6F0FA0EEN
Sadia Saeed

Abstracts

The convergence of accounting standards is increasing rapidly and it is not latest concept. After Second World War, the concept is started to use in many countries due to increased capital costs and monetary amalgamation. In start, the countries used the concept of harmonization by reducing the dissimilarities among capital markets of various countries. After 1990s, single set of accounting standards was considered as harmonization. The can be utilized in all big capital markets significantly. IASC was the foremost global principle setting committee that was established in 1973. It was become global organizer of accounting principles in 2001 and identified as IASB in 2001. More than 100 countries are using International Financial Reporting Standards after 2009. The Financial Accounting Standard Board and International Accounting Standard Board are still working to make single set of accounting standards that can be excellently used in all countries after 2002. On the other hand, Japan and Canada are working to make single set of accounting standards with International Financial Reporting Standards. (Continued...) Wordcount of report: 2000 words

Contents

Introduction
Discussion
Advantages
Comparability
International Expansion
Deduction in Costs
Disadvantages of Convergence
Integration Problems
Differences Among Various Factors
Difference in Laws
High Costs
Conclusion
References