Critically evaluates the process of global harmonisation of financial Essay

Critically evaluates the dish out of global harmonisation of financial reporting - Essay utilizationThe information furnished by financial statements are aimed at variant stakeholders like shareholders, management, regulatory bodies, suppliers, creditors, lenders, competitors, researchers, and the confederacy at large.The International Financial Reporting Standards (also known as IFRS) was conceptualised and developed by the International bill Standards Board (IASB) in 2001. After one year of inception of IASB, the member states of European Union (EU) affiliated to adapt IFRS standards for all listed corporations under their jurisdiction. Such regulatory enforcements were due to come into effect from 2005. In 2003, the number 1 IFRS was officially issued and by this time almost 19 countries were required to comply with global reporting standards. approximately 70 countries have since then mandated IFRS for listed companies and further 23 countries have either allowed listed c ompanies to voluntarily adopt IFRS or have mandated IFRS in listed entities (Ramanna and Sletten, 2009, pp.1-5).In the year 1985, Piper and Samuels, defined harmonisation as the process of obstetrical delivery the current international accounting standards into some sort of agreement so that the financial statements of different entities from different nations are prepared as per a common set of principles of disclosures and measurements (Samuels and Piper, 1985).Harmonisation of financial reporting would add the level of agreement related to presentation of information disclosure in practicing accounting standards between countries. The process of harmonisation will ensure development of a single global community irrespective of the revolution of stakeholders. The process will increase awareness among investors in capital markets and also develop a sentiency of responsibility in publicly traded firms regarding appropriate financial disclosures (Roberts et al., 1998). Harmonisat ion of financial reporting will help undisputed international transactions by minimising exchange