Research Paper on:
Pros and Cons of International Accounting Standards

Unformatted Sample Text from the Research Paper:
interest has increased a great deal as many hope to eventually come to a place where we can all experience an "internationalization of the economy" (Zwirn, 2001). In the following  paper we examine why so many feel such an approach is important, discuss some of the approaches, and also discuss some of the apparent strengths and weaknesses as it involves  specific countries. Why an International Accounting Standard? As mentioned, one of the main focuses of an international accounting standard would lead to an "internationalization of the economy" (Zwirn,  2001). This sounds good and sounds like an approach that would greatly strengthen the economic conditions of many, even if much of the world is not even close to the  economic strength of places such as the United States and China. But, in terms of specific advantages it is often argued as follows in regards to what benefits can be  reaped: * Reshape and reengineer internal management reporting systems. * Evaluate internal performance measures and executive compensation. * Improve external communications with analysts, investors, financial markets, and other  users of financial information. * Access international capital markets at the lowest cost of capital. * Increase understanding of a companys position relative to its global competitors.  * Better integrate pricing, financial reporting, earnings analysis, forecasting, and risk management (Duran et al., 2003). From another perspective we note that the following statement: "KPMG partner Ian Thomson  said that in an age of increasing international investments and financial reporting on the internet, the need for a common worldwide financial language and reporting framework made diverse standards obsolete.  Thomson said government, regulators, investors and the accounting profession needed to rededicate themselves to achieving convergence of accounting standards at the earliest date" (Africa News Service, 2001; p. 1008346u8842).