Explain the Goal of Harmonization of Accounting Systems

question 26

Essay

Explain the goal of harmonization of accounting systems.

---

Definitions:

Historical Annual Average

An average value calculated from a series of yearly figures, often used in financial analysis to smooth out fluctuations.

Holding-Period Return

Holding-period return is the total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Effective Annual Rate

The actual interest rate an investor receives or pays in a year, taking into account the effect of compounding.