International Accounting & Finance Assignment
Critically evaluate to what extent past research into the classification of accounting systems has become irrelevant because of international harmonization efforts.

During the recent decades, in our societies, we have observed a new trend towards the liberalization of markets .International business has become easier. Countries are now more open to foreign investments because barriers to trade have been dramatically reduced. For example, the capital markets are more interconnected; multinational companies get listed on worldwide stock exchange and also seek to invest in the countries where the competitive advantage is the highest... This phenomenon, called globalization, has an impact on all types of market and especially on the financial market. Therefore, when a multinational company possesses assets in different countries, it has to report its financial statement to the country it is settled in. In other words, it has to comply with the rules and regulations related to the national accounting system. By accounting system, we integrate the financial rules and regulations but also the actual accounting practices used in a country. Each country possesses its own accounting system influenced by different sources of factors such as the legal system, the taxation or even the culture…
Therefore, research have been carried out during the 20th century to classify the countries to have a better understanding of the differences of accounting systems and also distinguish what they might have in common. Countries, now, seek to harmonize the accounting systems to facilitate financial reporting for companies, help investors to make efficient decisions… However, international harmonization efforts can be broken down into three views: harmonization of accounting standards, of enforcements and finally of voluntary disclosure. Thus, a question needs to be raised. We have to evaluate to what extent past research into the