Early Deployment Of The Dutch West Indies Company

Despite those enormous advantages, it has been argued that IFRSS adoption lead to significant costs. The main argument is that IFRSs do not consider local needs and priorities as every country has their own ‘business environment, legal systems, cultures, language and political environment’ (Henderson and Peirson, 2000 cited from Malthus, S., 2004). However, to overcome this problem, IASB can accommodate flexible reporting standards that enable companies to choose alternatives that are more suitable for their external condition. It is opinion of some opponents of IFRS adoption that IAS is ‘insufficiently detailed’ (Uddin,M.S., 2005, p.4) that require accountants’ and auditor’ professional judgment. However, overly detail might be contra productive and not flexible in anticipating every changes and differences.

UK’s IFRSs are designed to make it easier to compare the performance of organizations in different countries, rather than each country maintaining its own GAAP, which makes such comparisons difficult. All listed EU companies have been required to use IFRSs since 2005. The adoption of IFRSs by the private sector is expected to have various benefits for both companies and investors; including (1) UK’s IFRSs will remove the need for companies with foreign subsidiaries to translate the accounts for consolidation with the parent company accounts. Also (2) it will be easier for investors to make informed decisions about the performance of companies in different countries because of the increased transparency and a better understanding of financial statements.

The U.S is moving toward IFRS (Forgeas, 2008). In the near future, all US company may need to report financial statements under IFRS. This makes the adaptation of IFRS unavoidable. Recently, some large multinational

The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy

With the growth of international business there is a need to standardize financial statements globally. Presently there are “approximately 120 foreign private issuers currently that report to the Commission using IFRS financial statements.” By standardizing accounting practices investors will be able to make informed decisions based on comparability and accuracy of financial statements. The SEC released this statement in 2008, “We believe that IFRS has the potential to best provide the common platform on which companies can report and investors can compare financial information.” The SEC has created a “Roadmap” or plan to convert US GAAP over to IFRS. According to The Committee of

For nearly half a century, a movement has been underway to establish a high-quality, comprehensive set of international accounting standards, with the goal of facilitating international trade and investment. In the global capital market, differences in the rules of accounting for the purposes of recognition, measurement, and reporting of financial results have impaired the smooth transfer of information across borders. Given that it accounts for nearly a third of the global market, there is considerable pressure for the United States to conform to the International Financial Reporting Standards (IFRS), as promulgated by the International Accounting Standards Board (IASB). While moving to a single set of accounting standards could create

From 1904, some people suggest that we need a uniform accounting standard in the world. After the work hard in more than half century, in 1973, international accounting standard committee has been found. Although this is a non-government organization, they set up accounting standard for all the country, which is convenient to international trade, comparison, and analysis. With the increase of recognition, there are more countries used it, but many organizations and people disagreed the standard. This essay will focus on the different attitude of initial recognition methods of International Accounting Standard 16: Property, Plant, and Equipment and discuss the advantage and disadvantage of methods and influence the reason why IAS will allow

are the differences between nations. These alteration in Accounting Practices are results of specific environmental factors, which have shaped them. Therefore, one of the first problems with standardisation I conclude is that the result of the harmonisation process could neither be a copy of the Anglo-American Model nor one of the Continental-European Model. The Anglo-

In addition, many studies confirm that investors’ trust in their company and decisions raise by following IFRS principles due to the transparency. In fact, Ball (2006) provides a paper which explains the direct and indirect IFRS’ advantages for the investors. He mentioned 5 direct advantages which the first one is that IFRS provides more accurate, timely and comprehensive data in the financial report and financial statement. The second advantage is that IFRS develop the quality of financial reporting which make small investors be able to deal with the financial statements and benefit from information in the statements since they are less likely to be able to deal with the financial statements, hence, risk is diminished by better understanding of the information in these statements. Thirdly, IFRS help to minimize the cost paid to the financial analysts to evaluate the financial statements’ information by the investors because the formats of reporting are standardized and they are easier to be compared internationally. Minimizing the cost of evaluating and operating the financial information maximizes the stock market efficiency which assists the investors to gain profits. Making the standards uniform helps to eliminate the barriers to the cross-border divestitures and acquisitions, therefore, it will present investors with growing takeover

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

In the major international market, there are currently only four countries do not require IFRS rules, and they are China, Japan, India, and the US. Pacter (2015) explained that presently there are one hundred and forty jurisdictions around the world need to have the completion of IFRS, and one hundred and sixteen countries require IFRS as their account rule. The IFRS can affect American business in many ways. The development of international business bring more and more non-US shareholders to American firms, and the potential stockholders may wish to have an IFRS financial statement to view the financial situation of the company. IFRS reports are moreover significant when American companies looking for buyers or capital in European countries. The understanding of the similarities and differences of GAAP and IFRS can give an assistance to these investors and investees to have a

By adopting IFRS it is expected that the investors and other users of financial statements will be beneficial, by lowering the costs of comparing alternative investments and increasing the quality of information. Investors are ready to invest in the company so company are also getting benefit from IFRS. The company who is involved more in foreign activities will be more beneficial by switching to IFRS. However, Ray j Ball has criticised about overall cost of the international standard. He argues that the implemented of the standards could be careless, and the regional difference in accounting could become hidden behind a label. He is also concerns that fair value important of IFRS and the impact of accountants from non-common law regions, where damages have been recognized in a less timely manner.

In 2001, International Accounting Standard Board (IASB) replaced International Accounting Standard Committee (IASC) in order to develop a high quality standard of accounting for use in the capital markets area and by other numbers of users. (Mary E. et.al, 2007). There were so many issues presented and discussed since then to achieve their main goal. However, without any guidance and framework, to create a new standard that is acceptable and relevant for all users of accounting are difficult. So, conceptual framework is basically was set up to assist the IASB by

IFRS also assist investors in making informed financial decisions and predictions of entity’s future financial performance and give a signal of higher quality accounting and transparency. Therefore, IFRS would tend to reduce earnings manipulation, enhance stock market efficiency and positively impact on entity’s’ stock returns and stock related financial performance measures.

As the development of globalization in economics in recent years, there is increasing popularity of IFRS. Based on the research(Shima and Yang 2012), there are more than 100 countries adopting the IFRS for their accounting standards. As IFRS could bring about varies advantages in comparison with other accounting standard. For Indonesian, there are three main factors encouraging it to adopt IFRS in terms of focusing on investors, transparency and comparability.