A research on the following contemporary accounting issue is to be conducted, presenting your findings with references.

"Considering the arguments for and against the harmonisation (convergence) of accounting practices globally, what would be your recommendation to United States accounting policy makers (e.g., The SEC and FASB)?"

Note: **Cite All Referencing**

Arguments for Global Harmonization:

International Business and Investment:

1. Discuss how harmonised accounting standards can facilitate international business transactions and attract global investments.

2. Highlight the advantages of consistent financial reporting for multinational corporations.

Comparability and Transparency:

3. Explain how global harmonisation enhances comparability of financial statements across countries, promoting transparency.

4. Discuss the benefits for investors, analysts, and other stakeholders in assessing the performance of multinational entities.

Reduced Complexity and Cost:

5. Explore how adopting globally harmonised standards can reduce the complexity of financial reporting for multinational companies.

6. Discuss potential cost savings in compliance and reporting.

Arguments Against Global Harmonization:

Diversity in Economic and Legal Systems:

1. Address concerns related to the diversity in economic and legal systems across countries.

2. Discuss challenges in creating a one-size-fits-all approach that accommodates different business environments.

Implementation Challenges:

3. Examine potential difficulties in implementing and enforcing global accounting standards uniformly across diverse jurisdictions.

4. Consider the resistance or hesitancy of some countries to adopt standardized practices.

Loss of National Sovereignty:

5. Discuss concerns about the potential loss of national sovereignty in setting accounting standards.

6. Consider the impact on a country's ability to tailor standards to its specific economic and regulatory needs.

US-specific Considerations:

Current Position of the U.S.:

1. Outline the current stance of the U.S. in terms of adopting international accounting standards.

2. Mention any recent developments or discussions on convergence.

Impact on U.S. Businesses:

3. Analyse how global harmonisation might affect U.S. businesses, especially multinational corporations.

4. Consider the implications for competitiveness and regulatory compliance.

Stakeholder Perspectives:

5. Explore the views of various stakeholders, including corporations, investors, and regulatory bodies in the U.S.

Recommendations to US Accounting Policymakers:

Balancing Global Consistency and National Needs:

1. Suggest a balanced approach that acknowledges the benefits of global harmonization while considering the unique needs and characteristics of the U.S. economy.

Gradual Convergence or Endorsement:

2. Consider recommending a phased approach to convergence or selective endorsement of global standards that align with U.S. interests.

Active Participation in Standard-Setting:

3. Emphasise the importance of the U.S. playing an active role in international standard-setting bodies to influence the development of global accounting standards.

Ongoing Monitoring and Evaluation:

4. Recommend continuous monitoring and evaluation of the impact of global harmonization on the U.S. economy and its stakeholders.