8. Various attempts have been made to reduce the accounting diversity that exists internationally.
This process is known as convergence and is discussed in more detail in Chapter 3. The ultimate
form of convergence would be a world in which all countries followed a similar set of financial
reporting rules and practices. Required: Consider each of the following factors that contribute to
existing accounting diversity as described in this chapter:
• Legal system
• Providers of financing
• Political and economic ties