Harmonization of Financial standards and reporting standards Essay

Harmonization of Financial standards and reporting standards - Essay Example In relation to this discussion, the integration of accounting practices followed by the company with that prevailing within the host country is also an important issue faced by the company in its global business practices. In order to address this issue, the phenomena of harmonization of different accounting standards and practices and emergence of a common set of accounting standards has come into lime light (Choi, Frost and Meek 1999). In this context, the paper aims to discuss the phenomena of harmonization and evolution of one common set of accounting standards in the most empirical manner. The paper intensively focuses upon financial and reporting standards and need of their harmonization. The paper also investigates the significance of different international bodies and organizations such as International Accounting Standard Board (IASB), International Federation of Accountants (IFAC), and Accounting standards Board (ASB) in the context of making the process of harmonization of reporting and accounting standards more smooth and effective (Deegan and Unerman 2011). Financial accounting and reporting standards and their needs Financial accounting can reporting standards can be considered as guidelines and direction provided by the apex regulator authorities of the country for the purpose of aligning accounting practices undertaken by individuals and business organization in maintaining their accounts and reporting the financial records in a fair manner. In relation to this, different accounting and reporting standards reflects some crucial accounting principles on the basis of which, an organization can undertake fair and effective accounting practices (Nobes 1999). As the span of and importance of business activities of different organization in an economy is quite vital, having integrity of accounting practices becomes quite essential phenomena. These standards are quite essential for the purpose of preventing misrepresentation of different account