Furthermore, it is a common belief among economists that for any reforms to be
introduced these changes must be an improvement on the status quo, and they
must stand a chance of being implemented. Therefore, unless international
accounting standards aim to improve on the status quo, it will be challenging to
incorporate them in national laws. This is because, in addition to the internal
dysfunctions of national law, there may be a lack of international co-operation. As
companies trade and raise capital from various jurisdictions, lack of international
financial instruments may have easily measurable value. Thus, the notion that a
uniform standard may be applied to all financial reporting may seem too
ambitious and may be naïve simply because the accounting standards such as
fair value accounting may ignore the inherent political and economic influences of
financial reporting.
Furthermore,