Advantages of international harmonisation from different perspectives
Investors
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
- Easily prepare group financial statements
- Reduce audit costs
- Easily transfer employees between different countries
Government
Can exercise improved control over foreign multinationals operating in their country as the companies are less able to hide foreign accounting practices
Revenue authorities (tax)
Tax liabilities of investors are easier to calculate
Large international auditing/accounting firms
Accounting and auditing are simpler as similar practices are used
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