Harmonization of Accounting Standards: A Study on Convergence of National Accounting Standards and IFRS

Running head: ACCOUNTING THEORY
Accounting Theory
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTING THEORY
Work Diary:
Observation and
Analysis
The purpose of the study is to understand the concept of
harmonization of accounting process across the UK and USA. To
develop the single set of the high quality, understandable, enforceable
and internationally accepted international financial reporting
standards. The analysis takes into the account the needs of financial
reporting from the emerging economies and SME entities. It is aimed
at bringing into the convergence of the national accounting standards
and IFRS for higher quality solutions.
Interpretation
and Experience
Converging of accounting standards helps in facilitating the
comparability between the enterprises that are operating in the
different jurisdictions. The study provides a learning experience that
convergence of accounting standard would help in creating greater
confidence in the investors mind and would reduce the cost of raising
capital.
What Did I
Learn?
Convergence helped in improving the consistency and transparency of
the financial reporting. Converting to IFRS may help countries to
remain consistently on both the macroeconomic aspects as well as the
financial reporting aspects between the investors and companies.
Relevance The report relevantly explains that private and SME enterprise
financial statements can be prepared under the IFRS that additionally
improves the comparability of the financial statements.
Tools of Data
Collection
The study is conducted based on the secondary data analysis. Journal
articles and published data from the websites are used to reflect the

2ACCOUNTING THEORY
substance of reporting standards.

3ACCOUNTING THEORY
Abstract:
The international financial reporting standard is considered as mutual international language
to carry out the business affairs in order to make the companies responsible and
understandable as well as comparable across the overseas boundaries. They are regarded as
the element of growing international shareholdings and trade especially for the companies
that have business dealings in most of the countries. International financial reporting standard
is regarded as the attempt of harmonizing the accounting across the UK and US however the
value of harmonization has quickly made the concept attraction across the world. The
accounting standards is observed as the strong assertion for best practices of bookkeeping
issued by the well-known accounting bodies that relates to the measurement aspects,
management and disclosure of accounting transactions and events under the systematization
of GAAP. The essay focuses on the linguistic, political and cultural ambiguity that are
inherent in the translation of accounting standard.