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Countries have different histories, values, cultures, and political and scotch systems. They argon besides in various stages of economic development. These various environments in which companies tilt influences financial accounting system. 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 fall in States (Schroeder, Clark, Cathey, 2002). Due to different accounting practices in the various countries, the accounting entropy reported by the multinational companies lead vary signifi faecal mattertly from one study to an different country. These accounting differences make it difficult for reported selective information to be combined by the parent company. In addition, if investors, creditors, and separate third party users can non understand the financial statements, they go out not invest in or lend sp ecie to the company. The posit for comparative financial statement account across countries resulted in a move towards harmonization of accounting standards (Schroeder, Clark, Cathey, 2002). harmonisation 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 parking lot 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. Accounting Standard ! Setting In the United States, a broad set of accounting standards started forming after the deport market encounter in 1929. The Securities action of 1933 and the Securities rally Act of 1934 established the Securities and Exchange Commission (SEC) which was given the authority to tell accounting principles and reporting practices. The SEC has historically acted as an overseer of accounting policies and relied...If you lack to get a full essay, revisal it on our website: OrderCustomPaper.com

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