Accounting (27th Edition) Edit edition

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Global accounting standards- The accounting standards which are formed for the purpose of creating a parity in the accounting structure at global level.

Analyze the needs of global accounting structure in today’s business environment.

As the concept of globalization is accepted globally by almost every nation, which has faded away the geographical boundaries for doing business. Earlier, the businesses were doing their operations within their national boundaries, whereas, now-a-days there are no such boundaries and hence, there is a need to adopt single accounting structure i.e. global accounting structure and the global accounting structure is governed by the global accounting standards.

In current business environment, corporations that wish to issue stocks through capital markets in various nations are bound to follow the different rules of each country. This leads to hindrance to entry.

In absence of global accounting standards, every nation adopts different accounting policies and procedures and the business which is having multi-national operations, is facing difficulty in preparing its accounts in a uniform manner, as the business has to comply with the accounting standard of all the nations in which it is having operations.

Hence, the need of global accounting standards is very essential for proper and uniform accounting.