The 17 Most Misunderstood Facts About what would be an advantage of having all countries adopt and follow the same accounting standards?
There are many advantages of following the same accounting standards. It’s definitely the right thing to do, but it’s the wrong thing to do. The reason is that the standard was created to make it easier for businesses to comply with accounting standards. However, many countries, including the United States, have different accounting standards from each other.
This isn’t surprising, because that’s exactly what happens. The US, for example, has a separate accounting standard from China, Korea, and Japan. This makes it very difficult for those countries to do business with each other. And it makes it even harder for individuals to buy stuff in the US.
I don’t know if this situation is really an advantage or not. However, if you have all countries follow the same accounting standard, that would mean that each country would have to have the same amount of money in their bank accounts. That is not a good thing. People do not want to be reminded that they have an account in China. If you have all countries adopt the same accounting standard then the problem is solved.
That would be a good thing. However, there are many countries that do not follow this standard. China being a prime example.
The Chinese government could not have a better accounting system than North Korea.
According to Wikipedia, North Korea has been the leader in developing the world’s accounting standards. In fact, they are the only country that has been in the top ten accounting nations. The problem is that the Chinese government has been controlling all of the accounting standards for years.
According to Wikipedia, China is the world’s ninth-largest economy. They do not have a standard in place to measure their financial results. China has been using a mix of the US dollar (which has a different relationship to the Chinese currency) and the renminbi (which is used in China) to report their revenues and expenses. North Korea has no such financial reporting system.
This puts North Korea and China in a difficult spot when trying to make money. They each have a different accounting system and the Chinese government has been trying to push its own accounting standards for years. The North Korean government has been saying it can’t afford to develop its own accounting system because it is too big a market. But the Chinese Government can’t find a way to keep their accounting standards separate from the one the North Koreans use.
The thing is, there is no real reason why they cant have a single standard accounting system. The problem is that each country would have an advantage and they would likely end up competing with each other on how to use the same standard.
Not only will it be easier to get people to agree on the standards, it will also make the process more efficient.