Skip to content
The following are obstacles for international harmonization of accounting standards;
- A different legal system whereby some countries require certain accounting practices and policies and other countries do not.
- Different purposes of financial statements, this is IFRS aimed at investment decision-making whereas many countries use financial statements for tax purposes.
- Language and cultural differences. Both of these can cause difficulties in the adoption of harmonized accounting standards.
- Lack of strong accountancy bodies. Many accountancy bodies in various countries are not independent or strong enough to press for harmonization of accounting standards in their jurisdiction.
- The different users of financial statements. Countries vary in the importance they place on user groups