The differences in accounting standards from country can vary as much as the
cultures themselves. These differences in the financial statements and how they are
prepared varies from country to country also. It can be difficult for a foreign nation to
convert these statements to an accounting language and standards that they can use and
obtain information from. There are arguments for and against a standardization of these
statements and practices. The statements and standards would be harmonized. We
define harmonizing as “The process of standardizing laws, regulations and practices to
facilitate the expansion, fairness and efficiencies of competing in a globalized economy
as in integrated financial markets, international accounting standards, harmonized
trading practices, and the sharing of technology for information dissemination.”
(Investor Words, 2016).
We can begin the argument for harmonizing would be the growth of interactions
business. People tend to do things that are easy and harmonizing the accounting
standards would make international business easier and less time consuming. As global
industries merge and consolidate the need for harmonization becomes stronger and
stronger. “If accounting reports are to become a universal means of communication,
action must be taken to harmonies world-wide efforts to meet the international users’
needs.” (Mohan, 2016). A second point is investors. People from all over the globe wish
to invest in foreign business to make sure the they have a diversified portfolio. But the
financial statements are not harmonized then the investor is at a disadvantage and can’t
