What's the importance of uniform accounting standards?

Answer 1

Uniform accounting standards will fight fraud

'Having a multiplicity of accounting, auditing and other standards around the world is against the public interest.' That's the verdict of Graham Ward, President of the US-based International Federation of Accountants (IFAC), and keynote speaker at the World Accounting Summit.

'A multiplicity of accounting creates confusion, encourages error and facilitates fraud. The cure for these ills is to have a single set of international standards, of the highest quality, set in the public interest by an international expert body, which transparently consults with and recognises the legitimate interests of the international community.'

Global alignment with International Financial Reporting Standards (IFRS) was a central topic of the first ever World Accounting Summit. (Click on the 1st link for the complete press release)


The core arguments for setting forth uniform standards are:
1. They serve as a coordinating device, saving time and effort, just as the rules of the road speed up traffic, and reduce accidents.
2. Public policy should be made through a well-defined, transparent, process with clear outcomes.
3. They make auditing easier, and are useful to auditors in their negotiations with their clients. (extracted from the 2nd link)

Answer 2

even though it form of feels to be the direction that maximum standards boards are leaning in direction of I even have doubts that we are going to ever have a unmarried worldwide familiar. subject #a million - Too many familiar putting boards exist already. Reporting standards in many different worldwide places are no longer as strict as our very own and that i do no longer see the SEC loosening or the others tightening up. who's reporting familiar could prevail? subject #2 - mutually as e book/tax adjustments exist besides worldwide standards could have lots extra significant adjustments that isn't be straight forward to reconcile (mutually with not extra LIFO). All tax platforms are designed to incentivise human beings to do specific issues (like purchase a house) so i do no longer see the taxman changing to house another device. subject #3 - Int'l standards are extra theory based than GAAP which assumes that, someway, US auditors will without warning improve a spine. i'm right here to permit you recognize that ain't gonna ensue as long as costs are so extreme.