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Financial Reporting Question & Answers
Finance & Accounting
Pages 10 (2510 words)
Name: Tutor: Course: Date: Financial reporting Benefits of international standardization of accounting standards Accounting standards refer to principles of accounting, methods and laws provided by an accounting board, the International Accounting Standards Board which is an independent body.
It eliminates all the alternatives associated with financial reporting. There are various benefits of standardization: Standardization of accounting rules enable multinational firms in developed nations to create significant employment opportunities in the job market. Professionals in accounting and other fields find it easy to relocate to other countries as a result of globalization for there is a common language in preparation of financial reports and accounts. For instance, countries such as Hungary and India forward their accounting duties to companies based in developed countries (Iatridis 2010). These firms spend less time trying to be in line with a country’s accounting policy and strict regulations as most of the rules are adopted from International Accounting Standards. Moreover, adaptation of globalized standardized accounting standards has made it easier for firms to centralize their training in accounting and increase the number of financial care centers. Transparency of unified financial standards has a boost in division of labor in the global market thus it enables smaller investors to invest in other countries. Standardization of accounting standards promotes innovation. These standards give rise to new markets and products hence, creating a significant enhancement for innovations (Hesser, 2006). ...
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