Question

Various attempts have been made to reduce the accounting diversity that exists internationally. This process is known as convergence. The ultimate form of convergence would be a world in which all countries followed a similar set of financial reporting rules and practices. Required: Consider each of the following factors that contribute to existing accounting diversity as described in this chapter: • Legalsystem • Taxation • Providersoffinancing • Inflation • Politicalandeconomicties • Culture Which factor do you believe represents the greatest impediment to the inter- national convergence of accounting? Which factor do you believe creates the smallest impediment to convergence? Explain your reasoning.

Answer 1

SOLUTION:-

The legal system is one of the best impediment.The legal system depicted the tenets and directions and the bookkeeping measures that should be followed in. A specific nation.

Every nation have their own tenets and directions that portrays how bookkeeping must be put forth to plan monetary expressions which result in diversification.

Taxation is fairly incorporated into the legal system itself.

Culture is one of the littlest hindrance. CULTURE depicts how individuals respond according to their thoughts or social standards and so on. That is the means by which they respond or speak to as indicated by what they been have instructed or as per what the general public treats each monetary thing like.

However if the legitimate systems over every nation is made comparative the general population need to introduce their announcements independent of their thoughts likewise and hence such social standards can be treated with.