• 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

    relative to Dr. Carleton's results, Professor Carleton did not take into account some important factors such as: Comsat's investment programs, the need for infrastructure investments to encourage economic development, and the financial health of the firm in the short and longer term.6 On the other hand, if Comsat does not

  2. International Accounting Standarts

    Financial means are going to be re-evaluated using the fair value (actual market situation), even if that means an over-evaluation. 3.1.6. Accounting for Leases HGB: 1) Leasing business is not regulated in the HGB. Therefore all leasing items are going to be calculated from the legal owner of the item.

  1. 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.

  2. Unit 5 Introduction to Accounting

    should need to bring some money to increase the amount of capital available. Shares A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle

  1. The Purpose of Keeping Accurate Accounts

    Good record keeping is vital in regards to meeting the financial commitments of the business and providing information on which decisions for the future of the business can be based. While the business maintains records to monitor and record its normal business activities, it is also necessary because of obligations under the taxation laws.

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

    Different new models of accounting were developed and such work continued through to the early 1980s. Although it declined with the levels of inflation dropping throughout the world, the debate carries on. It has been argued that historical cost accounting information suffers from problems of relevance in times of rising

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

    and the maximum withdrawal a day is �300. Internet Banking is available 24 hours a day. This can be used to register accounts and transferring money from one account to another. It is also used for setting up standing orders or paying bills.

  2. Profitability & Reporting Assignment

    76,500 103,000 PROFIT/LOSS 9,000 11,250 28,500 -7,000 Using the illustration of appendix 1 above, we can see that it is evident that D4 generates a turnover of �96,000. If this added to the turnover of the other three divisions, the total turnover of the firm sums up to being �343,000 and the profit of the entire company is �41,750.

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