University of Economics Katowice
Use of harmonized accounting standards may reduce investor's uncertainty and can thus reduce the cost of capital. It can significantly improve the communication between business users and all their statements. Due to the globalization of business and international harmonization of financial reporting countries experiences a shift in paradigms from historical costs accounting towards fair value measurement. Paper provides an analysis how the ability to measure accounting harmonization can be helpful from the perspective of a globalized world. A comparative analysis between IFRS and IFRS for SMEs show the level of compatibility between these sets of accounting regulation.