Companies in each country must adapt and regulate their financial statements to certain requirements. They base and format their accounting standards on nationally accepted general accounting principles (GAAP) established by securities regulators. However, in this modern and globalized era, due to too many financial differences between nations, it is increasingly difficult for entities to compare their financial data and identify trends in their financial position and performance compared to competitors. As a response to such financial chaos, harmonization consists of formulating a universal GAAP; accountants around the world would subsequently be able to use a single standardized practice which, according to Weber (1992), would improve financial market information, government accountability, facilitate international transactions and minimize exchange costs. However, harmonization of standards remains a questionable answer in accounting. This paper will attempt to shed light on the current debate on the pros and cons of adopting a universal set of accounting standards. International accounting standards are discussed, established and published by the International Accounting Standards Board (IASB), established in 2001. The International Accounting Standards Committee (IASC) was the predecessor of the IASB; its foundation is to harmonize all global GAAP into a single set of accounting principles. According to Mogul (2003), harmonization is defined as the constant process of ensuring that each country's GAAP is formulated, aligned and updated to international best practices (GAAP in other countries) with appropriate modifications and adjustments, considering each national condition . Harmonization is therefore desired by every financier... half of the article... number 7, pp. 975-992 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/science (Accessed: 3 November 2010) Mogul, S. (2003) Harmonization of accounting standards. Available at: http://www.icai.org/resource_file/11430p681-684.pdf (Accessed: 3 November 2010) Blake, J. and Hossain, M. (1996) Readings in International Accounting. London: Routledge.Weber, CM (1992) 'Harmonisation of international accounting standards', The National Public Accountant [Online]. Available at: http://www.allbusiness.com/accounting/methods-standards/339832-1.html (Accessed: 3 November 2010)Wittington, G. (2008) 'Harmonisation or discord? The critical role of the IASB conceptual framework review, Journal of Accounting and Public Policy, vol. 27, number 6, pp. 495-502 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/science (accessed: 03 November 2010)