Why international accounting standard board formulate accounting standards?

The IASB has developed IFRS (International Financial Reporting Standards) in order to fufill the public interest for "high quality, understandable" and internationally comparableFinancial Statements. This is due to Globalisation and the free flow across borders of Capital. There is a need for a single set of "rules" by which accounting material is prepared.

For example:

In the past there was a case of a manufacturer that was listed on the Stock Exchange in two countries (The US and Germany- their home nation).

They had to create two sets of financial statements in order to fufill the rules of the Stock Exchanges.

This for one had an added cost to the firm but also resulted in the firm publishing a substantial profit in one country and a large loss in the other (due to the different preparations).

This basically negated any value that the Financial Statments would have thus the need for International Standards so that regardless of the countries listing country any investor could understand and use their Statements.