Question

a) Explain what harmonization convergence differs.
b) In your opinion, what are the most important arguments in favor of the international convergence of public companies in the United States?
c) In your opinion, what are the most important arguments in favor of the international convergence of public companies in the United States?

Note:Could you please don't use your handwriting to answer this question to be easy for me to solve

Answer 1

Solution A

Migration from Harmonisation to convergence seeks to combine single established accounting standards which can be benchmarked for all firms. They include IFRS and GAAP standards as integration internationally.

Since harmonisation is aimed to minimize differences between both abovr accounting standards it faces flak as the merger and acquisition cycles get delayed and hence global growth slows down and being sole reason to move towards convergence.

Solution B

International convergence is aimed at faster consolidation and transparency of large firms and thereof results in better auditing and evenly distributed balance sheets and hence better conparison of large firms and their performance.

Solution C

Same as Solution B