In addition, other directives have been issued dealing with industry specific reporting such as banks and insurance companies. Although the Fourth Directive is applicable to both public and private companies, there are exceptions for smaller companies and certain companies covered in subsequent directives. Prior to the harmonization measures, companies were able to carry on cross-border commerce with different accounting and fiscal systems. But they spent considerable time and expense standardizing the financial information into a form and content that was consistent with their own domestic reports. The directive's extensive disclosure requirements are of utmost importance.
Disclosure serves as the basis of harmonization.
Any user, at least theoretically, should be able to derive comparable financial data by modifying financial statements with the required disclosure information. Implications for U.S. Accountants U.S. accountants, and perhaps Americans in general, have long had a tradition of insensitivity to business developments in other countries. The Japanese, German, Italian, and other foreign business executives have been more than willing to learn as much as possible about U.S. business practices. They have examined U.S. business practices. The U.S. may be one of the world's leaders in financial reporting.