Why should we follow international accounting standard in much priority ?

We need to follow International Accounting standard for the following reasons:

1. Improve the reliabiility of financial statements - Users of financial statements can have more confidence that the reports made are reliable and not mistated

2. Comparability - Users of financial statements can use the reports for making a better decision making through comparisons.

3. Minimize Frauds and Accounting Manipulations

To keep things short:

1. You need them for comparability: this means financial documents between two said companies, national or international, need to be comparable and have a single rule base they follow. So that inventory is rightly valued for example, or property is rightly valued without the proper use of the accounting standards one company may be undervalued or overvalued which would lead to a decieving view in the financial statements.

2. For consistancy: it makes reading and understanding of financial statements a breeze.

3. Because the law requires it: most stock exchanges require the adoption of international financial reporting standards and in the absense of such an adoption a company may not gain a listing.