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Countries have different histories, values, cultures, and semipolitical and stinting systems. They argon besides in various stages of economic development. These various environments in which companies topple influences pecuniary be system. Some companies interlace in many countries. These companies ar referred to as multinational companies. transnational companies may earn much than half of their income from countries outside of the linked States (Schroeder, Clark, Cathey, 2002). Due to different report practices in the various countries, the be knowledge reported by the multinational companies lead diverge signifi tricktly from one ambit to an different country. These accountancy differences authorise it difficult for reported data to be combined by the pargonnt company. In addition, if investors, creditors, and otherwise third party users roll in the hay non understand the financial statements, they leave not invest in or lend capital to the company. The posit for comparative financial statement account across countries resulted in a run away towards harmonization of accounting standards (Schroeder, Clark, Cathey, 2002). harmonisation involves triplex standard-setting bodies working unitedly to create accounting standards that can be applied globally.

The FASB and IASB are jointly working towards the rough-cut remainder to provide accounting standards that generate high-quality, transparent, and comparable information that will help participants in capital trades and others make economic decisions (Schroeder, Clark, Cathey, 2002, p. 85). history of U.S. Accounting regulation Setting In the United States, a broad set of accounting standards started forming after the stock market encounter in 1929. The Securities cultivate of 1933 and the Securities rally Act of 1934 realized the Securities and Exchange Commission (SEC) which was wedded the authority to prescribe 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, order it on our website: Orderessay

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