GLOBAL ACCOUNTING HARMONIZATION ARGUMENTS AND OBSTACLES Presentation by

GLOBAL ACCOUNTING HARMONIZATION: ARGUMENTS AND OBSTACLES Presentation by Cesar L. Fernandez Course: ACG 5138 Advanced Financial Reporting & Accounting Concepts Dr. Gray 10/26/2019

THE IDEA OF GLOBAL ACCOUNTING HARMONIZATION IS TO ACHIEVE UNIFORMITY IN ACCOUNTING REPORTS WORLDWIDE. Aspects in favor of harmonization: Saving Time and Money Facilitate reading, and understanding accounting reports Comparability of financial statements between companies. Aspects against harmonization: Cultural, legal, and tax differences system Resistance to changing longestablished norms.

Defining Global Accounting Harmonization Global The Unification of Standards for Accounting Harmonization in All Countries of The World

SINCE IT BEGAN. . . First Stage, in the 1960 s • 8 th International Congress of Accountants • 1967 International Accounting, the first textbook on the subject Second Stage, the 1970 s and 1980 s • 1979 FASB incorporated representatives of international standards issuers • 1987 IASC had already disclosed twenty-five standards • 1988 FASB publishes its support for the internationalization of standards.

. . . UNTIL THE CURRENT SITUATION Third Stage, in the 1990 s • 1991: FASB published a strategic plan for international activities • 1993: Joint projects with countries • 1995: joint project with IASC • 1996: US Congress expressed support for international standards of the highest quality. Fourth Stage, since 2000 • Rapid growth of international standards • collaboration of the FASB and the IASB • 2009 more than one hundred countries with international standards • 2013 creation of International Financial Reporting Standards (IFRS)

ECONOMIC ARGUMENTS IN FAVOR OF HARMONIZATION Facilitates the reading, and understanding of accounting reports Saving time and money Increase the efficiency

OBSTACLES TO HARMONIZATION The translation Differences in cultural values Reluctance to adopt changes Lack of trained accountants

Conclusions The harmonization of the financial statements seems a valid way to achieve uniformity The obstacles to harmonization or convergence are real and considerable

“Glocalization” Glossary of Terms Updating Courses Interchanges Training

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