It is a fact that in any enterprise, its various and numerous corporate governance policies must function within a system that makes sure that all its accounting polices are carried out only after the preparation of the financial reports of the enterprise. The same system must also be able to make sure that the reports prepared are not only fair, but are also unbiased, and are representative. The basic management of any enterprise would need more information than what is generally contained within its financial statements. This would in turn be utilized for planning, decision making, and fro control within the organization. If the financial statement were to include, for example, accounting information as well, then it would become a fundamental source of data, which could be well used for the running of the enterprise. The problem in the creation and the development of an international accounting standard is that fact that the adoption of a sort of 'dual reporting' system, wherein both financial reporting and accounting were to be harmonized, is whether or not the system would be applicable and useful to both the standards, that is, of both financial and accounting, in individual countries, and also to the several existing international guidelines created for the purpose. (Reaching International Accounting Standards) .
What is harmonization of financial accounting and reporting? .
According to the findings from a joint study entitled 'Financial Reporting in North America', undertaken by the Financial Accounting Standards Board of the United States or FASB, Instituto Mexicano de Contadores Públicos A.C. or IMCP, Canadian Institute of Chartered Accountants or CICA, which was published in 1995, it was extremely important to study and to analyze the various similarities and differences in accounting standards, to identify the several different areas where there can be progress in the study of accounting standards, and in harmonizing those standards, and to provide the users of financial statements with the pertinent and relevant information that would increase their awareness and their capability of comparing business enterprises.