However, many countries still have adopted uniform reporting standards, and the reasons as to why they have done so can be generally summarised into three reasons; the net economical value of reporting standards; the net political value of reporting standards and finally; synchronisation of reporting standards, which all we be further explained.
WHAT ARE UNIFORM REPORTING STANDARDS, AND WHY IMPLEMENT THEM?
Accounting reporting standards typically come in two different forms; International Financial Reporting Standards (IFRS), a set of accounting standards created by ...
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...n rule-based and principles-based standards of accounting” (Sunder 2009). There is therefore an attraction for fewer, but more general standards that leave implementation up to interpretation.
Although it appears that there is a very high potential if all nations were to adopt uniform reporting standards, there is still going to be a lot of discord between companies in worse economic environments, and companies within good economic environments. And though it seems that the net political value, net economic value and synchronisation value would all be very valid reasons, as given with Germany, Kenya and Turkey, there will never be a full harmonisation, allowing there to be uniform reporting standards. This therefore holds true with Ball’s initial statement that “the notion that uniform standards alone will produce uniform financial reporting seems naïve”.
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