The early (1973-1988)harmonization efforts of the International Accounting Standards Committee (IASC)created standards that have been described as a "lowest common denominator" approach. What was the effect of these first international accounting standards?

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The early harmonization efforts of the IASC created standards that accommodated existing accounting practices in various countries. This approach was criticized for being a "lowest common denominator" approach, which means that the standards were not particularly rigorous or ambitious. As a result, it was difficult for companies to comply fully with the standards, and comparability of financial statements across countries was not consistently achieved. However, the standards did provide a starting point for further international standard-setting efforts, and they helped to establish the IASC as an important body in the world of accounting.

The Early (1973-1988)harmonization Efforts of the International Accounting Standards Committee