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Countries have different histories, values, cultures, and political and sparing systems. They argon as well in various stages of economic development. These various environments in which companies fragile influences financial method of accounting. Some companies operate in many countries. These companies ar referred to as multinational companies. Multinational companies may earn much than half of their income from countries outside of the get together 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 mountaintly from one field of study 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 some other third party users can non understand the financial statements, they volition not invest in or lend cu rrency 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 universal 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 transmission line market encounter in 1929. The Securities take on 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 overseer of accounting policies and relied...If you lack to get a full essay, collection it on our website: OrderCustomPaper.com

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