The greatest benefit that would flow from harmonization would be the comparability of international
financial information. Such comparability would eliminate the current misunderstandings about the reliability of
foreign financial statements and would remove one of the most important impediments to the flow of
international investment. (Choi et al., 1999) Harmonization would save time and money that is currently spent to
consolidate divergent financial information when more than one set of reports is required to comply with the
different national laws or practice. It will also improve the tendency for accounting standards throughout the
world to be raised to the highest possible level and to be consistent with local economic, legal and social
conditions (Nobes and parker 2000). It would be beneficial to those countries which still do not have adequate
codified standards of accounting and auditing and to international accountancy firms with clients of firms which
have at least one foreign subsidiary. It would also help in raising foreign capital as investors, financial analysts
and foreign lenders will be able to understand the financial statements of foreign companies and they would be
able to compare the investment opportunities which will help them to make the right investment decision.