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Countries have different histories, values, cultures, and political and frugal systems. They argon likewise in various stages of economic development. These various environments in which companies wobble influences financial report. Some companies operate in many countries. These companies argon referred to as multinational companies. Multinational companies may earn more than than half of their income from countries outside of the linked States (Schroeder, Clark, Cathey, 2002). Due to different accounting practices in the various countries, the accounting training reported by the multinational companies lead vary signifi croupetly from one discipline to an different country. These accounting differences make it difficult for reported data to be combined by the parent company. In addition, if investors, creditors, and different third party users can non understand the financial statements, they allow not invest in or lend silver to the company. Th e 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 area 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 S! tates, a broad set of accounting standards started forming after the rail line market encounter in 1929. The Securities exploit of 1933 and the Securities rally Act of 1934 established the Securities and Exchange Commission (SEC) which was given the authority to regularise 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, ordinate it on our website: OrderCustomPaper.com

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