Analyzing Financial Statements After Converging International Financial Reporting Standards and US Financial Accounting Standards for Publicly Traded Companies in the USA‪.‬

INTRODUCTION The desirability of accounting harmonization across countries and continents has been discussed and debated for many years. The potential benefits and costs of accounting harmonization have been debated with equal zest. The evidence is equally lacking of conclusion one way or other. Bae et. al (2008) suggest Generally Accepted Accounting Principles (GAAP) differences are associated with economic costs for financial analysts. Ball et. al (2003) suggest that there is little if any empirical evidence of the existence of magnitude of the benefits form or costs imposed by differences in accounting standards around the world. It seems to defy common understanding that there would not be benefits and costs savings of accounting harmonization across countries and continents for firms and financial analysts. Often heard arguments from the proponents of accounting harmonization include expectations that harmonization helps reduce information asymmetries, lowers the cost of capital, and increase capital flow across borders.