Harmonization : In accounting context harmonization may be defined as the process aimed at enhancing the comparability of financial statements produced in different countries accounting regulations. Its basically a way of standardizing accounting transactions.
Need for Harmonization :
1) Globalization and Liberalization
2) Emergence of Global Market Scenario (i.e.; Inter-country Borrowing and Investments)
3) Compliance of Statues of Different Countries.
4) Harmonization provide Common Measurement Parameters.
P.S. : Achieving complete harmonization may not be possible due to various economic, political, legal and cultural differences however massive deviations can be eliminated to large extent with harmonization.
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