Impact of Standardization and Harmonization of Accounting Standards - Dissertation Example

Download file to see previous pages In this similar context, ethical dilemma plays an imperative part in harmonizing along with standardizing the accounting standards as it concerns certain significant moral values that include honesty, reliability, durability, and integrity among others.

From a research methodological viewpoint, both quantitative, as well as qualitative research approaches, have been taken into concern. Moreover, valuable data associated with this research study has been collected through the execution of structured interviews in the form of questionnaires that have been administered to the officials of the companies following different accounting standards like IASB and IFRS among others. Besides, hypothesis testing by utilizing a statistical tool of correlation as a form of meta-analysis has also been considered for this particular research study.

Chapter 1: Introduction
1.1 Background
The perception of standardization is fundamentally described as the process of creating uniform business methods throughout different locations or divisions. This particular concept tends to diminish the jeopardy of failure by consistently complying with the business-related operational expenditures as well as the performance-based objectives (Richen & Steinhorst, 2005). Relatively, the conception of harmonization is commonly described as the adjustment of the inconsistencies or differences prevailing amid various business policy standards, procedures, specifications, and protocols (NSCA, n.d.).

Contextually, the Accounting Standards (ASs) are primarily recognized as the specific guidelines which are duly authorized by the skilled professionals relating to any accounting, regulatory, or government body. The ASs comprises the significant characteristics of recognition, treatment, disclosure, and the measurement of accounting transactions recorded in the financial statements. In this regard, it has been apparently observed that the prime intention of the ASs is to standardize the different accounting policies and consequently, enhance the reliability of the financial statements to a significant extent (The Institute of Chartered Accountants of India, n.d.).

The two most significant ASs, commonly followed in the international context includes International Accounting Standard Boards (IASB) and Financial Accounting Standards Board (FASB). Recent studies on the application of both asses revealed that there is an utmost need for harmonization as well as standardization of accounting policies. In this similar context, the idea of standardization, as well as harmonization of the accounting standards, can be defined as an incessant procedure of ensuring the reality that the Generally Accepted Accounting Principles (GAAP) are restructured, allied, and devised toward superior international practices.

It has been viewed that the aspect of both standardizations, as well as harmonization, is required because of two important factors such as enlarged cross-border borrowings and investments along with the increased level of globalization in businesses. The two aforementioned boards of accounting systems affirm that with standardization along with the harmonization of different accounting policies, modern-day business enterprises can generate consistent and superior quality financial reporting along with disclosures. ...Download file to see next pages Read More