IAS7 vs FASB 95

Introduction. Financial Accounting Statement 95 and International Accounting Standard 7 contain similar and different information required by each individual regulator, U.S GAAP or IASC. The harmonization of these comparative standards is an ongoing global concern. The principals of each standard should not be a problem in merging the differences in FASB Statement 95 and IAS counterpart, yet enforcement of a global standard could be of concern. The ethnocentric view of United States and the establishment of a well accepted International Standard also plays a role in harmonization of Statement of Cash Flows. The U.S GAAP standard for the Statement of Cash Flows seems to be pleasing among enterprises, so there is no pressure for change. Alternatively, business has become largely international leading to the need for a common International Accounting Standard that meets the needs and objectives of all enterprises no matter what country. The purpose is to display differences and sim...