Impact of International Accounting Harmonization

9 Pages Posted: 29 Jan 2014

Date Written: January 29, 2014


Harmonization is a process of increasing the compatibility of accounting practices by setting limits on how much they can vary. Harmonized standards are free of logical conflict, and should improve the compatibility of financial information from different countries. Efforts to harmonize accounting standards began even before the creation of the International Accounting Standard Committee (IASC) in 1973. More recently, companies seeking capital outside of their home markets and investors attempting to diversify their investment internationally faced increasing problems resulting from national differences in accounting measurements, disclosures, and auditing. In response, harmonization efforts accelerated during the 1990s. International Accounting harmonization now is one of the most important issues facing accounting standard setters, securities market regulators, stock exchanges, and those who prepare or use financial statements. Efforts to achieve international harmonization have been marked by sharp debates. Should accounting standards be harmonized, made uniform, or less alone? Is it reasonable that less-developed countries adopt the same accounting standards as those used in highly developed countries? This paper aims to address these issues.

Keywords: Harmonization, International Accounting Standards

JEL Classification: F29, M10, N70

Suggested Citation

Lakmal, Darshana, Impact of International Accounting Harmonization (January 29, 2014). Available at SSRN: or

Darshana Lakmal (Contact Author)

Eastern University, Sri Lanka ( email )

Chenkalady, Eastern 30350
Sri Lanka

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics