Abstract

The International Accounting Standards Committee (IASC) was established in 1973 to harmonize international accounting standards. The IASC's standards (IASs) are now accepted in some form by numerous stock exchanges, including those in London, Germany, Hong Kong, Singapore, and Switzerland. The US SEC already accepts use of three IASs and has indicated that it may accept all IASs in late 1998. Though accepted by a growing number of stock exchanges, this may not represent individual country's accounting standards. This article investigates the recent progress of international accounting harmonization by examining whether countries' official standards are in compliance with the IASs in the 1990s. Overall, harmonization via IASs appears to increase from 1991 to 1993. However, when the results of the "Comparability of Financial Statements" program became effective in 1995, at least initially, the level of harmonization decreased. This drop is not unexpected given that the 1995 changes eliminated previously approved and practiced accounting methods. This paper provides an introduction to the topic "The Process of International Harmonization of Accounting Standards". Keywords: Harmonization, International Accounting Standard Board (IASB), International Accounting Standards (IAS), Accounting Standards etc. DOI: 10.7176/RJFA/11-17-04 Publication date: October 31 st 2020

Highlights

  • The international harmonization process of Accounting Standards started somewhere in the 1960s’ and recent developments show that it is still going on

  • 4.Conclusion The International Accounting Standards Board (IASB) was previously known as the International Accounting Standards Committee (IASC) until April 2001, when it became the IASB

  • In 2001, when the IASB took over responsibility for international financial reporting, it took on all of the IASC's standards

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Summary

Introduction

This paper provides an introduction to the topic "The Process of International Harmonization of Accounting Standards". 1.Introduction The international harmonization process of Accounting Standards started somewhere in the 1960s’ and recent developments show that it is still going on. International companies can operate with different Accounting Standards. International companies are facing the problem that Accounting rules are changing around the world.

Results
Conclusion

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