International Accounting: Convergence and Harmonisation of Accounting Standards

INTERNATIONAL
ACCOUNTING

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Assessment of the motives behind the convergence and harmonisation of accounting
standards by IASC/IASB and EU...............................................................................................3
The issues and challenges which are being faced in working towards converging and
harmonising accounting practices. Reflect in what ways IFAC and IOSCO could render
support the harmonisation efforts of such companies. ...............................................................4
A critical examination of the achievements or successes of both IASB and EU in harmonising
accounting practices....................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
The report prepared as under would help to explain in what ways International
accounting standards committee (IASC) which is a parent entity of international accounting
standards board (Astolfi, 2021). The purpose being served by IASC is for improving and
harmonising financial reporting primarily through the development of international accounting
standards and also promoting the use of those standards which in the general purpose would be
promoting the financial statements which are being published by business firms. It would
explain what benefits and advantages are being enjoyed and how it would help a business
enterprise as well.
TASK
Assessment of the motives behind the convergence and harmonisation of accounting standards
by IASC/IASB and EU.
It would be helpful for investors to compare and have a better understanding of accounts
from all EU member states, motivating them for investing across the borders. With effect it
would increase the efficiency of the market and also minimize the cost of capital for
organisations, improving the competitiveness and helping to boost the growth and expansion as
well. The issuing and preparation of IFRS and exposure drafts would be following the due
process which is being stipulated in the constitution (Hampl and Gyönyörová, 2021). The issuing
and approval of interpretations are being prepared and developed by the IFRS interpretations
committee. Harmonisation also aims at reducing and minimizing the variation or differences in
financial reporting processes across the globe. The aim is to achieve certain level of comparison
in such a way that financial records are presented. The basic objective of such harmonising
exercise is to manage and improve the compatibility and comparability in presenting and
preparing the accounting records, statements and reports as well. Harmonisation of accounting
standards would help the world economy in certain ways such as minimizing exchange costs and
facilitating international transactions as well. Benefits of harmonisation would be consisting of
conserving time and money, comparing international financial data or information, enhancing
accounting standards and making better decisions which would be in accordance of consolidated