7.19 LO2 Over the past two decades Australia has moved through the following stages:

???? ???? ???? Producing its own standards with reference to differences between these and the equivalent international standards

???? ???? ???? Changing its standards to be compatible with the equivalent international accounting standards.

The process was labelled ‘harmonisation’ and involved adapting international standards for use in Australia.

???? ???? ???? Changing its standards to be consistent with the equivalent international accounting standards.

The process was labelled ‘convergence’ and involved adopting the international accounting standards for use in Australia.

(a) Why would Australia give up its standards in favour of international accounting standards?