The Prerequisites for the Accounting Harmonization

Abstract :

Defining accounting harmonization is a good point to start and the perspective suggests an implementation of a unitary and uniform legislation according to the requirements and provisions of International Accounting Standards and European Directives. As a golden rule, before proceeding to harmonization there is important to assess the company’s implementation capacity. In order for the information to be accurate, it is important to make it easily verifiable in terms of accuracy. Therefore, finding ways to present information so that it is easy to check and facilitate the checks implies having sufficient and appropriate evidence to support the accuracy and precision used in the context of measurement. The main purpose of the performed work is to answer to the question of the degree with which the accounting harmonization will enhance the credibility of the financial statements and add value to the company’s business operations. In order to do this, we have performed a qualitative research by analyzing the responses of a group of 20 professionals- auditors and accountants, which concluded that the harmonization process is useful and brings multiple benefits to their day-to-day activities and that they play a very significant role in the process of harmonization by actively presenting various comparative analysis.