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what are the purposes of financial reporting internationally?

Can some-one please tell me what is the purpose of financial reporting internationally?

Public Comments

1. Financial reporting gives investors an idea of the company's fiscal health. International reporting has to follow certain standards set up by reporting authorities (e.g. SEC) of the countries they want to get investors from. Companies that follow such standards reassure their investors that they are worth investing in and are honest. That can lure in more investors which benefits the company even more.
2. Simply put, business is no longer a local enterprise, they are international whether or not they deal internationally they may have investors from any country including the countries themselves.(governments do invest in businesses). Reporting allows investors or prospective investors to see how well or not well the company is doing.
3. It should also be said that it can help to prevent improved international corporate governance to prevent things such as Worldcom and Enron type scandals. The OECD (Organisation for Economic and Commercial/Cooperative Development) also wants this to help prevent money laundering and tax evasion. It is in the interest of a lot of the worlds larger economies to have these standards to make things more transparent in accounting (both business and personal) so that it is harder for people to avoid tax. Certain large governments are using the threat of international terrorism as an excuse to make the OECD pressure countries (Switzerland, Kay mans etc) to open up accounts or face penalties to illustrate where terrorists are storing their cash. If this is just what they use it for is another question on big brother et al....