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Advantages of international harmonization from different perspectives


Financial statements (local and international) are more comparable, allowing investors to potentially invest abroad

Multinational companies are able to:

  • Attract foreign investments
  • Comply with the reporting requirements of foreign stock exchanges
  • Easilypreparegroup financial statements
  • Reduceauditcosts
  • Easilytransferemployeesbetweendifferentcountries


Can exercise improved control over foreign multinational  their country as the companies are less able to hide foreign accounting practices

Revenue authorities(tax)

Taxliabilities ofinvestorsareeasiertocalculate

Large international auditing/accounting firms

Accounting and auditing are simple ras similar practices are used.

Barriers to international harmonization

Differing legal systems prevent the development of accounting practices. Countries have varying ideas of who the user groups are and their importance. The purpose of financial reporting differs in countries regarding taxa assessment and investor decision-making. Different needs of developing countries.Unusual circumstances can impact a company’s ability to prepare financial statements in accordance with IFFRstandards

  • Development
  • Implantation
  • Enforcement of IFRS’s