• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Harmonisation Of Accounting.

Extracts from this document...


To: Mr Williams From: 123456 Title: Harmonisation Of Accounting Date: 07/04/2003 Introduction: Harmonisation, also known by standardisation, uniformity and convergence are used refer to efforts to ensure that like transactions and events are accounted for in a like way wherever they take place or are reported. Different players have had different levels of success, while some have shifted their focus to notions of equivalence or argued for mutual recognition. Arguments Against Harmonisation: The differences in accounting requirements matter now that business, investment and capital markets are international because both domestic and foreign readers use financial statements. When accounting requirements differ, readers may struggle to distinguish the changes in results and financial position, which are caused by variations in performance from the effects caused by the use of different accounting requirements. ...read more.


Companies may also complain about what they perceive as an uneven playing field on which they have to comply with more onerous requirements than those of their competitors in other countries. Arguments For Harmonisation: The sole purpose of the harmonisation of national accounting requirements is to harmonise the actual reporting practices of companies. The process is helped when companies adopt accounting practices, sometimes voluntarily, which are additional to those which are required by national requirements and which are in accordance with international practice and requirements. This often involves the publication of information which is not currently required by national requirements but which is commonplace in the annual reports of other international companies. Possibly the most important argument for the harmonisation of accounting practices is the fact that everyone will be aware of what everyone else is doing and more importantly what those figures mean. ...read more.


This will mean that they are at an acceptable standard and will not be required to be put to additional expenditure further down the line meaning that extra revenue could be put to greater use in research and development or possible even expanding of the company. Evaluation: Overall I believe that the harmonisation of accounting practices is a very good idea. It means that everyone all over the world can understand each other and if necessary help each other out. With it being a global understanding it can only help international trade and try to make the world a safer place. Without the place of harmonisation there is the greater chance of conflicts arising and arguments about who has the greater practices and what information they actually contain. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. Comsat case

    Hence, the recommendation is to use the average of all three methods, which will help balance the various strengths and drawbacks of any one model, providing greater assurance for the correctness of the results. By using the average of the three methods to determine the cost of equity (DCF, CAPM, and DERP)

  2. This report has been produced as evidence for Unit 9 - 'Financial Services' - ...

    But remember, by receiving your income and distributions in cash instead of reinvesting and letting them compound, the return you calculate is likely to be slightly lower than what your fund reports. Also keep in mind that "total return" is generally quoted as a cumulative percentage that may or may not include the effects of any sales charges.

  1. International Accounting Standarts

    Re-evaluation must then be made every accounting period in order to ensure actuality. Using the re-evaluation method is used to detect the "real actual" value of a company, in order to attract shareholder for financing. --> That significant difference in evaluation of assets mirrors the intention of both standards pretty well.

  2. The Purpose of Keeping Accurate Accounts

    Club and Society accounts are very different although there are few parts that are similar to Sole Traders. The layouts of the accounts are different; the non-profit making account is divided into four groups. These include purchases, trading Account, subscriptions and operating costs.

  1. Identifying and describing the main financial service needs for a student starting at university

    So monthly repayments will vary depending on your income, e.g. �7/month from �10,001 - �11,000, �75/month from �17001 - �20,000. The Student Loans Company will work with the Inland Revenue to collect repayments directly from your salary. Overdrafts With Halifax you can easily arrange an overdraft by just phoning or

  2. Unit 5 Introduction to Accounting

    For this reason, it is also known as the EBIT (earnings before interest and taxes) margin. * Net profit margin - this is a much narrower measure of profits, as it takes all costs into account, not just direct ones.

  1. What does Finance involve.

    5 years, I have to pay back the full �17,000 plus the additional 10% interest rate. - 10% of �17,000 = �1,700 This means that I will have to pay back the original amount of �17,000 and an additional �1,700 so in total I will be paying back �17,000 +

  2. 'Historic cost accounting is the worst possible accounting convention, until one considers the alternatives.'

    However, since 1920s, criticisms of historical cost accounting have been raised by some notable scholars such as Sweeney, MacNeal, Canning and Paton. From the 1950s the level of criticism increased by well-known academics such as Chambers, Sterling, Edwards and Bell.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work