Why must comply with international accounting standards

Why must comply with international accounting standards
The world economy and international accounting standards, compliance with accounting standards used by all countries benefit from great. Historically, the industrialized world was a model for international accounting standards in four games. They are the United States, the United Kingdom, continental Europe, Latin America and the standards. International Accounting Standards Committee (IASC), the United States, Canada, and the United Kingdom began in 1973 with the convergence. To achieve Recently, the International Accounting Standards Board (IASB) has more harmonization and convergence of accounting standards. All EU companies to International Financial Reporting Standards (IFRS) financial statements in accordance with the fundamental requested. New Zealand, Hong Kong, Australia and many other non-EU countries such as Israel, for those who have taken the necessary steps to start the harmonization of accounting standards with IFRS.
To facilitate the international exchange of information and minimize costs recovery in financial markets world-wide economic policies, standardize and harmonize accounting standards which helps to improve government accountability. Harmonized with international standards makes it less risky investment and financial decisions at the international level for administrators. Foreign companies listed on stock exchanges in the United States if the same applications with the United States, most of the time because you can use, can be very difficult. If all countries, a global "justice." Auditors and regulators would receive the same accounting standards and the evaluation of companies look at the same information. These are difficult if you do not have the same set of rules and regulations to follow their accounts from different countries to compare companies' financial information. In some cases, companies are required to prepare financial statements in a variety of accounts, it takes time and financial resources of the company. Free trade is not harmonized between countries, national tariffs and quotas will include a more accurate and less risky for commercial ones.

Compliance with reporting requirements for the standardization of the national regulatory authorities should start with the annual financial statements. Organization of Securities Commissions (IOSCO), the United States housemate 'SEC member, a leader in the development of the accounting method for the preparation of securities regulator. When reporting on the results of the operational and capital costs roommate IOSCO has built a policy of limiting the amount of alternative communication, a company can use. In 2002, the IASB and FASB, Norwalk has an agreement formalizes the commitment to start the convergence of accounting standards. Important steps have been taken since the Treaty, the FASB and the IASB met on a regular basis. These purchase accounting, revenue recognition, leasing and business sectors benefit obligation practice, work together to try to develop common standards. With significant improvements in long-term project to make the conceptual framework of accounting standards has been established. In this context, two basic assumption is that an accrual basis, and the "continuity" basis. Accounting Accounting in the State to comply with all the companies must be harmonized across the world.
In less developed countries, as well as a regional association of accounting and accounting education through the establishment of training programs to promote the harmonization of accounting standards are trying to bring. The International Monetary Fund has contributed to this effort by providing support to governments. Developing countries to adopt international accounting standards for the preparation of national accounting standards and will contribute to the costs later. With the rest of the Third World countries with high inflation rates harmonization of standards may be able to reduce bad accounting.
Harmonised standards for all the world to accounting rules, the United States recognizes, must begin with international standards and to follow them. U.S. model is not an ideal model, and the Internal Revenue Service has been suggested that the rules are very complex. Many authors, the adoption of international standards in the United States without some of the countries within the framework of the foreign companies and the winning is not enough to argue that a strong system of rules