WHY DOES THE INTERNATIONAL ACCOUNTING STANDARDIZATION HAVE TO PLAY AN IMPORTANT ROLE IN SUSTAINABLE ECONOMICS AND FINANCIAL STRATEGIES?

This paper traces the benefits of international accounting standards and their contribution to harmonization in business economics and financial practice. In this review, the goal is to describe and summarize how the accounting standards promote financial decisions and influence the business environment in a global scale. It is expected that the unified, standardized accounting information system will lead to new types of analysis and data, furthermore with the possible integration of new indicators from the business economics and financialpractice of certain countries. Standardization of financial accounting has tended to follow the integration of the markets served by the accounts. The present impetus for global accounting standards follows the accelerating integration of the word economy. The global accounting standards would enable the world’s stock markets to become more closely integrated. It is important for companies to develop coherent and consistent financialstrategies and to utilize international accounting methods to support strategic planning, decision-making and control.