THE CHALLENGES OF HARMONIZATION OF INTERNATIONAL ACCOUNTING STANDARDS
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ABSTRACT: THE CHALLENGES OF HARMONIZATION OF INTERNATIONAL ACCOUNTING STANDARDS
This research investigates the challenges of harmonizing international accounting standards, aiming to (1) identify the key obstacles to the harmonization of accounting standards globally, (2) evaluate the impact of divergent accounting standards on international financial reporting, and (3) assess the strategies employed to achieve standardization. A survey design was utilized to collect data from a large sample, with a sample size of 387 respondents determined using Taro Yamane’s formula, ensuring a 95% confidence level and a 5% margin of error. The study was conducted in Lagos, due to its significant international business activities. The survey achieved a reliability coefficient score of 0.90. Findings reveal that cultural differences, varying legal systems, and economic disparities pose significant challenges to harmonizing accounting standards. The study recommends the establishment of a global regulatory body to oversee the implementation of international standards and the promotion of collaborative efforts among countries to achieve harmonization.
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