Accounting Information System for Harmonization,

Accounting Information System for Harmonization," Siva Sankaran and Dhia AlHashim (2006) make an argument for a harmonization of varied accounting systems into a common web-based platform. Currently, different organizations use varied accounting systems, a practice that is increasingly at odds with the growing globalized economy. To facilitate the globalized way that many organizations are conducting their businesses, Sankaran and AlHashim (2006) point to the need for an international accounting system that is able to "harmonize" or adapt to these different accounting systems.

Making this program web-based would further allow for a more synergistic global economy, since an Internet-based program would be accessible throughout the globe. The authors of this article make a strong case for the need for harmonized accounting standards and procedures. Many large corporations have substantial dealings both domestically and in many parts of the world, creating the need for a system that could handle its diverse accounting needs. Similarly, different investors need to make economic choices, and their success is greatly influenced by their ability to compare financial information.

The harmonization of financial reports also ensures that corporations and watchdogs -- both industry and from national and international governments -- are able to detect any corporate wrongdoing. In devising a harmonized model of accounting, the authors noted a number of challenges. First, they note the current incompatibility of hardware and software programs within companies, and the accompanying security risks that harmonization entails. They also note that different accounting practices are in place in different parts of the world.

However, the authors believe that their generalized model provides a practical architecture for computer-assisted harmonization. The model that they present includes a user friendly interface, a detailed directory service to aid a user in locating data, an algorithm-based formula to execute commands. This model could then be customized for the needs of the different companies. Sankaran and AlHashim (2006) make a compelling case regarding the need for harmonized accounting standards and practices.

In addition to the globalized economy, they also rightly point to the benefits of such harmonization for corporations - including a greater ability to keep track of expenses and a better way of reconciling different accounting practices in its branches worldwide. Furthermore, Sankaran and AlHashim (2006) also allay fears that harmonization is equivalent to imposing only one accounting system around the world. Instead, they highlight the need for commonality, for a web-based accounting system that lends itself to different accounting practices.

The paper makes a strong argument, and the data regarding the need for a harmonized accounting system is compelling. While this article may present a challenge for readers unfamiliar with basic programming language, the inclusion of a generic algorithm for its proposed computer assisted program adds to the authors' argument that.