November 4, 2007
The growth of international business today stresses the importance of one set of high quality standards. If the IASBs goal, to develop a single set of high quality global accounting standards is reached, United States corporations should adopt these accounting principles. Many advantages of convergence exist. A single set of standards will reduce the cost of capital because the same rules apply regardless of the location. The costs and risks associated with translation will be minimized. Finally, comparability of the financial statements will allow for better decision making for management. The principle based accounting approach should be adopted in order to created harmony among international trade.