Accounting Standards can vary widely from country to country, thus making comparisons of company accounts difficult. Other adverse effects can include higher than necessary preparation costs for multinational companies, who may have to prepare different reports on their operations for different countries. It is clear that such problems and inefficiencies are no longer acceptable either to investors or corporations in an increasingly globalised capital market. International Accounting Standards were written to harmonise all accounting standards throughout the world, improving the ability of investors, creditors, governments, and others to make informed resource allocation and policy decisions. The ISAC Standards are now accepted by almost all leading stock exchanges and many international companies are now preparing their accounts using them. The G7 Finance Ministers and Central Bank Governors have called on all countries that participate in global capital markets to commit to...

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