After taking the time to examine IAS in detail, I found that it did not force companies to correct many serious inadequacies that exist in their local accounting standards. Consequently, I have limited my investments to those companies that list in the US and thus are required to use US GAAP rules. As to the question of a sound legal infrastructure and credible oversight. There are several reasons for this. The various laws on financial accounting are generally drafted to protect the interests each country's internal revenue service.
Investor protection is either absent or an afterthought.
The absence of an American style jury system also makes a US style system of allowing the profession to draft accounting rules unworkable. A double standard Allowing a double standard, allowing international companies to use a more flexible system than US GAAP, will put US companies at a competitive disadvantage. This will likely have to two results. While they are there, it is not unreasonable to expect them to also list on foreign exchanges. Further, if US companies are held to a double standard, they will protest.