Why International Accounting Standards Should certainly Be Harmonized

Outsourcing companies have retail accounting software and sets of expert professionals who work day and night in shifts to manage and regulate the accounting services for your companies.

Retail Accounting - The Significance and Benefits

The world economy and international accounting would greatly benefit from having harmonized accounting standards that can be used by all countries.; Historically there have been four main accounting standards models in the industrialized world.; They are the United States, The United Kingdom, Continental Europe, and Latin American standards.; The International Accounting Standards Committee (IASC) started to achieve convergence in 1973 with the United States, Canada, and the United Kingdom.; Recently, the International Accounting Standards Board (IASB) has taken strides in achieving even more harmonization and convergence of accounting standards.; All E.U companies have been required to base their financial reports according to the International Financial Reporting Standards (IFRS).; Many other countries not in the E.U such as New Zealand, Hong Kong, Australia, and Israel have also taken steps to start harmonizing their accounting standards to that of the IRFS.

Lesser developed countries are also trying to promote accounting standards harmonization by establishing regional accounting associations as well as teaching accounting education programs.; The International Monetary Fund has assisted in this effort by giving aid to governments.; By having developing countries adopt international accounting standards as well it will help reduce the expense of creating domestic accounting standards.; By harmonizing standards with the rest of the world developing countries with high inflation rates may be able to cut down on poor accounting practices.