It has been viewed that keeping standard accounting standard will be beneficial for the economies of the world. Firstly it will set the common platform for the preparation of the financial statements by the companies across the world. This will enable proper understanding of the performance of the company. In case different accounting procedures are followed, the assessment of the performance would be difficult as the understanding of the accounting standards in different countries would be required. Following different accounting standards may result in incorrect interpretations and thus impacting the investment decisions (Murphy, 2010). If standard guidelines are developed, irrespective of the location of the company, such discrepancies will not arise. Another benefit of developing standard acoounting standard would be cost reduction for the multi national corporations. Multi national corporations currently have to mandatorily reconcile their accounting information for multiple accounting standards (Diaconu, 2007). This is not only laborious for the company itself but also result in ambiguity in the financial results. Another importance of the standard accounting standards is with respect to the developing nations or the countries that have scarce resources. Such nations would not have enough investment opportunities for the resource creation and regulation of national accounting standard setting agencies. This would give these nations the opportunities to have tax advantage. The last advantage that can be considered is that companies would get eligible to get listed on stock exchange. The companies would be able to get listed on more than one stock exchange easily as the eligibility criterion and the financial requirements of the stock exchange would be same (Marion & Cengage, 2006). This would result in increased volume of securities transactions and thus benefiting the stock exchange and the securities market. Further the eligibility criteria could be met easily.