the study of problems moving from the unified accounting system to theinternational accounting standards

The financial reporting is an essential function of accounting, it express in fairly for the correctvalue of economic unit. this requires a display in balance sheet all owned assets for economic unittogether tangible and intangible, can it measure according to for available traditional accountingmeasurements or it measures impossible in these measurements, this requires new relevancemeasurements for intangible assets which cannot indicate it in cash. although the shifting in economicage towards the intellectual economic or information age but the accountants still work in assumptions ofthe industrial age which put for tangible assets and its role for creating the value for economic unit, thiswill can lead the economic units to fail. incorrectly attribute all difference between the book value andmarket value for intangible assets which not recognized in the balance sheet, this difference comprises, inaddition, the value of this asset the effect of inflation and the influence of economic and politicaldecisions. the intellectual capital centralizing about itself, which consider intellectual capital for certaincorporation but not ditto for another, this means the comparison between two corporations did not giveacceptable results, the benefited comparative between two years or more for the corporation itself whichdetermine the development in accumulated knowledge incorporation.