Consolidating foreign subsidiaries requires that the financial statements prepared in accordance

with foreign accounting rules must be converted into U.S. GAAP. Companies interested in

obtaining capital in foreign countries often are required to provide financial statements prepared

in accordance with accounting rules in that country, which are likely to differ from rules in the

home country. Therefore, harmonization of accounting standards among countries became very

Discuss the following questions:

1-Describe some driving forces for the international development of accounting

2. Explain the goal of harmonization of accounting systems.

3. What are the two primary approaches to the harmonization of accounting standards? Which

method would be more beneficial, and why?

4- Discuss the main functions of the International Accounting Standards Board and

the International Accounting Standard Committee.