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France - Generally Accepted Accounting Practice ( Plan Comptable Général).China - Chinese Accounting Standards ( Zhōngguó qǐyè kuàijì zhǔnzé 中国企业会计准则).Canada - Generally Accepted Accounting Principles.(for a firm located outside of the U.S.) to report in this widely accepted format. This standard is adopted in whole, or in large part, by many countries. International Financial Reporting Standards.Giant firms in some Asian countries were able to take advantage of their poorly devised accounting standards to cover up immense debts and losses, which yielded a collective effect that eventually led the whole region into financial crisis.Ĭommon accounting standards around the globe In particular, the Asian financial meltdown in the late 1990s has been partially attributed to the lack of detailed accounting standards. The lack of transparent accounting standards in some nations has been cited as increasing the difficulty of doing business in them. Massive accounting irregularities at large firms such as Worldcom and Enron illustrate that, despite all these efforts, widespread fraud can still occur, and even be missed by the outside auditors.īenefits of accounting standards

Accounting standards were largely written in the early 21st century. The notable limitations of accounting standards are their inflexibility, time-consuming process to create them, the difficulty of choosing between alternative treatments and their restrictive scope. 3 Common accounting standards around the globe.