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Countries have different histories, values, cultures, and political and economical systems. They argon also in various stages of economic development. These various environments in which companies inclination influences financial accountancy. Some companies operate in many countries. These companies are referred to as multinational companies. Multinational companies may earn more than than half of their income from countries outside of the coupled States (Schroeder, Clark, Cathey, 2002). Due to different accounting practices in the various countries, the accounting discipline reported by the multinational companies lead vary signifi fueltly from one plain to an different country. These accounting differences make it difficult for reported info to be combined by the parent company. In addition, if investors, creditors, and other third party users can non understand the financial statements, they exit not invest in or lend bills to the company. The posit for comparative financial statement account crosswise countries resulted in a move towards harmonization of accounting standards (Schroeder, Clark, Cathey, 2002). harmonization involves triplex standard-setting bodies working together to create accounting standards that can be applied globally.

The FASB and IASB are jointly working towards the joint remainder to provide accounting standards that generate high-quality, transparent, and comparable information that will help participants in capital markets and others make economic decisions (Schroeder, Clark, Cathey, 2002, p. 85). history of U.S. Accou nting Standard Setting In the United States! , a broad set of accounting standards started forming after the melodic line market encounter in 1929. The Securities figure out of 1933 and the Securities rally Act of 1934 established the Securities and Exchange Commission (SEC) which was given the authority to ordinate accounting principles and reporting practices. The SEC has historically acted as an superintendent of accounting policies and relied...If you lack to get a full essay, dress it on our website: OrderCustomPaper.com

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