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Due to globalization, many business transactions happen between different geographical entities. In order to safeguard the interest of both parties involved and create a common platform of accounting regulations, the IFRS International Financial Regulation Standards were established and agreed to be followed by most of the countries in the world. These standards are referred in during the preparation of business agreements or for internal transfer in multinational corporations.
Apart from these standards, each country has formulated its own regulations for incoming and outgoing trade. These rules are changed or regulated to fit the IFRS norms in most of the cases if there is a disagreement of terms. A sound knowledge in IFRS standards and the internal regulations pertaining to the countries involved is mandatory for accountants attempting to draw contracts of prepare statement for the above said purposes.
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