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Discussion of international financial reporting standards
Discussion of International Financial Reporting Standards:Challenges and Issues Revolving around the path of its transition
|language || ||english
|wordcount || ||4036 (cca 11 pages)
|contextual quality || ||N/A
|language level || ||N/A
|price || ||free
|sources || ||23
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Preview of the essay: Discussion of international financial reporting standards
Discussion of International Financial Reporting Standards: Challenges and Issues Revolving around the path of its transition Introduction With the increasing globalization as the internet has levelled the playing field, more and more countries are producing and selling goods and capital moves more freely. Companies or investors who do business globally need to understand each nation’s accounting principles. If a Canadian company is listed on a foreign stock exchange, it needs to comply with foreign regulations to reconcile its financial statements to foreign accounting standards under Canadian GAAP. However, if every country has different accounting standards, there is a large amount of costs to reconcile financial statements from one to the other. Also, investors will have difficulties in comparing companies. With the growing awareness and harmonization or adoptions of IFRS, this problem may be solved. Harmonization of international accounting standards has become the focus of increasing attention among accounting academics, practitioners and researchers (Abongwa, 2005). There is a trend towards increased worldwide convergence of IFRS. The gold behind IFRS is to harmonize accounting between countries which should ultimately make it easier to conduct business internationally and raise funds in global ...
... internal control management, budgeting and forecasting, human resource, IT system, and stakeholder relations. Moreover, IFRS is not static, it is still under development. Many questions/problems are difficult to be answered and solved at this point in time. Therefore, it is questionable of whether the costs to implement the IFRS will exceed benefits. With culture, language, and legal system playing an important role in influencing interpretation of standards, it is extremely difficult to achieve an ideal universal standard. Thus, conversion may be a long and harsh way than we might think. Canada, on its way to fully adoption of IFRS, must pay attention and caution to the addressing challenges and issues.
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