CONVERGENCE

What are the major forces leading to convergence in international accounting standards and practices?

What are the major forces leading to convergence in international accounting standards and practices?

The international standard-setting process was an effort by the developed nations to create standards that could be used by developing and smaller nations not able to develop their own. As the business world became more global, investor groups, regulators, large companies and auditing firms began to realize the importance of common standards in all areas of the financial reporting chain.

The formation of the European Union accelerated this realization as these major economies began ...