complete the project with respect to existing international standards by
the beginning of 1993. 25/ Thus, the next year and one-half represents
a critical point in the effort towards harmonization.
As noted, recognition of lASe standards would not mean that local
country regulators could no longer impose their own standards on their
domestic companies. 26/ Rather, many of the benefits of harmonization
could be obtained if, at least for purposes of foreign issuers, local
regulators would accept financial statements prepared in accordance
with or reconciled to lASe standards. 27/
U.S. ROLE IN ACHIEVING HARMONIZATION
The United States, with one of the largest financial markets in the
world and a fully-developed regulatory structure, will obviously play an
IASC, supra note 7, at 8.
Imposing local standards might, however, disadvantage their
While this might create a comparability
problem for U.S. issuers
who were required to comply with U.S. GAAP, such U.S. issuers
could also standards disparity. might well
reconcile their financial statements to international if they felt that U.S. standards caused a competitive U.S. companies w.ith significant international operations produce such a reconciliation as a matter of course.