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International Accounting Standards (lAS) are a set of global financial reporting standards developed by the International Accounting Standards Board (lASS). They are becoming the generally accepted accounting standards for capital markets outside of the United States, and they are designed for use worldwide to make company financial results comparable. International harmonization is one of the most crucial issues facing security regulators, stock exchanges and those who prepare financial statements. It is a very complex and flexible issue which tries to accommodate national differences that appear in accounting, disclosures and auditing practices. International accounting standards are adopted as a result of international or political agreement, voluntary compliance or decisions by national accounting organizations. In the first half of 2000, the European Commission announced approval of a proposal that by 2005 all publicly listed companies in the European Union must adopt the financial accounting standards of lASS. This regulation will make the European Union the largest region to have one common set of detailed accounting standards.