In the case of a multinational corporation, for example, if there was a wish to reduce the costs of multiple listings in a foreign stock exchange, one must remember that economic inter dependence among various countries, including capital market integration, would mean that there must exist a sort of 'derived demand' for an already agreed upon set of accounting standards that would stretch across and apply over national borders and boundaries, in a harmonization, therefore, this would in turn mean that the primary beneficiaries of the harmonization would be multinationals across the globe, and since it is a fact that harmonization would result in increasing dramatically the comparability and the understanding of the numerous financial statements that are being made by a multinational corporation, and by their trading partners, several international lenders and investors would also be able to derive the direct benefits of the harmonization of financial accounting and reporting. (Ma, Ronald; Ronald, 1997, p. 487) .

             What are the motives for the harmonization of financial accounting and reporting? Why is it so important today? How is harmonizing analyzed? It must be remembered that the primary objective of any financial accounting statement would be to provide the relevant information about the financial position, the financial adaptability, and the performance of the enterprise, in such a manner that it would prove to be useful to a large number of users who may be involved in making financial decisions for the company. (Higson, 2003, p. 74) However, one must also remember that the harmonization of accounting principles and reporting, on an international scale, would be a tough proposition. Today, for example, the EEC, or the European Economic Community and the International Standards Accounting Committee have both joined hands in trying to find the best way to harmonize accounting principles and reporting, and it is hoped that the result would be able to exert its influence on the Fourth Directive.