Exposure Draft 32, The Comparability of Financial Statements: Implications of International Accounting Standards in the United States and Abroad
Date of Defense
David Rozelle, Accountancy
Robert Neubig, Accountancy
Jerry Kreuze, Accountancy
As the globalization of the business community influences an increasing number of companies, the accounting profession is being called upon by preparers, investors, and even many companies themselves to harmonize the interpretational reporting for these entities. The companies most affected are those registered on securities exchanges throughout the world, which currently number approximately 500. Just as every country has its own culture, so too does each country have its own unique set of accounting standards which must be followed by any company wishing to operate there. These companies face the high cost and complication of reporting according to not only the standards of its own country, but those of the host country as well. This paper focuses on the progress of the international harmonization of accounting standards. A discussion of the value of international standards and criticisms of these standards is followed by a review of the evolution of the International Accounting Standards Committee and its current status. Also discussed is the International Organization of Securities Commissions and its role in the harmonization effort. Next, Exposure Draft 32, The Comparability of Financial Statements, is analyzed, including comparisons to US accounting standards. Reactions to the Exposure Draft, especially from the US, Are cited. The paper concludes with a discussion of the future of the IASC and international accounting standards.
Cheney, Lynn, "Exposure Draft 32, The Comparability of Financial Statements: Implications of International Accounting Standards in the United States and Abroad" (1991). Honors Theses. 25.
Honors Thesis-Campus Only