... disciplines. Neither financial nor management accounting is a subset of the other. They each have a distinct purpose and audience (Turner, 1983). According to Abraham Seidmann (2005) harmonization in the field of financial accounting is the process of creating a similar set of procedures by establishing boundaries as to how much they can differ across the world. "As a result of globalisation, the accounting profession has become increasingly aware of the need to establish a single set of accounting standards that would valid in the international arena". He argues that the greatest benefit that would flow from harmonization would be the comparability of international financial information as such comparability would eliminate the current misunderstandings about the reliability of "foreign" financial statements and would remove of the most important obstacle to the free flow of international investment He also argues that commercial lenders or investors could have confidence in such harmonious reporting and ...

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