Political economy of international accounting standards.

Abstract

The world economy has grown at an unprecedented rate which has resulted in the rise of multinational companies (MNCs) as an important actor in international trade and investment. In our increasingly globalised markets for finance, goods and services, a variety of decision makers need to evaluate these MNCs on a common basis. The existence of these MNCs has added new dimensions to the accounting field as differences between national and international accounting standards would make such a task difficult.