Without these accounting standards each and every business entity would have to develop their own accounting standards that would make the comparison of financial information of different business enterprises difficult. The interests of the financial activities of the individual and institutional investors have become global recognizable and there has been active involvement of various organizational bodies for the development of a widely accepted accounting framework beneficial to the investors. The existence of an efficient and liquid capital market can only be possible, if the investors are provided with transparent, relevant and reliable information. Introduction: Universal Accounting Approach &Cross Border Investment The corporate sector is facing certain complexities in terms of corporate governance and financial reporting and has also affected the US Capital markets. The current financial community is devoid of strong framework, which can integrate the systems altogether and develop a global financial reporting language. The silver lining in the current complexities would be the sudden and tremendous progress towards the achievement of a global financial reporting language.
The development of a global financial reporting language would be the establishment of a strong financial framework, which will comply with the universal accounting standards and regulations. ...Show more