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Article: International Accounting Standards
- Article from:
- Encyclopedia of Business and Finance, 2nd ed.
- Author:
CopyrightCOPYRIGHT 2007 Thomson Gale. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTERNATIONAL ACCOUNTING STANDARDS
Comparable, transparent and reliable financial information is fundamental for the smooth functioning of capital markets. In the global arena, the need for comparable standards of financial reporting has become paramount because of a dramatic growth in the number, reach, and size of multinational corporations; foreign direct investments; cross-border purchases; sales of securities; and the number of foreign securities listings on the stock exchanges. Nevertheless, because of the social, economic, legal, and cultural differences among the countries, the accounting standards and practices in different countries vary.
To improve the comparability of ...