Role of Financial Accounting Standardization in Initial Public Offerings

The main role of accounting standardization is to provide uniform view on financial position of reporting company. The uniform reporting contributes to trustworthy image and understanding from investors and regulatory authorities. This article deals with information obligatory rules in the course of IPO. We focus on exchanges because they are those that use IFRS and US GAAP concepts in listing rules. Different approaches of exchanges are compared in listing rules of the most important exchanges (NYSE, NASDAQ, LSE and HKSE).