Running Header: INTERNATIONAL ACCOUNTING1International accounting standardsNameInstitutionProfessorCourseDate
INTERNATIONAL ACCOUNTING2International accounting standardsIntroductionThe International Accounting Standard is an independent body that was formed in the year 1963. Therefore, it is a principle-setting department that is responsible for developing and publishing of the International Financial Reporting Standard (IFRS). Additionally, the body also has the mandate of auditing and approving all the interpretations made by the IFRS. The main effort conducted by this body is developing an international financial reporting structure. This is achieved through the guidance availed by the regulatory system. Notably, investors, financial decisions require a lot of protection to avoid exploitation and making of large losses. To provide them with full protection, reliable information is a crucial tool in their strategies. Therefore the IAS ensures that investors and financial markets, regardless of their geographical areas, have high quality information, which builds their confidence. Need for international accountingTo harmonize is the modification of variations of various procedures or standards of measurements for them to agree and lead to the same conclusion. Harmonization of accounting standards is the process through which accountants zip the gap between different standards and have common ones applicable globally. It is through harmonization that the stakeholders are well informed about the market, and this assists in their decision making (Choi, & Meek, 2011). Harmonization of accounting standards will facilitate the realization of gains generated worldwide. This will be achieved through the provision of adequate information to the main players of the economy, such as policymakers. It will give a commoninformation base to the economy regulators, and this will be used in the evaluation of the
INTERNATIONAL ACCOUNTING3global economy. Accounting standards shall be used to curb the risk by use of trade confinements such as tariffs (Nobes & In Parker, 2016).