Facilitating The Adoption Of Ifrs

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.

As stated earlier, the IASB arose from specific needs of the accounting industry and the public. As international trade has increased, the need for transnational accounting information has increased as well. This sparked the demand for development of international accounting standards to make financial data between countries more comparable. In 1973, the International Accounting Standards Committee (IASC) was formed to develop these international standards. The standards issued by the IASC, prior to 2001, were called International Accounting Standards (IASs). In 2001, the IASC made the International Accounting Standards Board (IASB) the official international standard-setting body. The standards issued by the IASB are called International Financial Reporting Standards (IFRSs) (Schroeder, Clark, & Cathey, 2011, p. 82-87).

This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This

The IFRS is basically a set of accounting rules which are issued by the IASB based in London, UK. These accounting standards have originated from its predecessor IASC defining the term IAS, which occurred in the 70’s. it was only after 2000’s that the IASB took a strong hold under the label IFRS claiming to be a lot more independent even though pertaining to its predecessor, efficiently staffed and better funded. Caffermen and zeff (2006) discuss about the gradual spread of accounting has made a considerable progress over time, and with the adoption of IFRS worldwide, accounting procedures could be smoothened.

A joint convergence committee created the members of (FASB) and (IASB). (IASB) is recognized as an independent accounting standard-setting body that is similar to (FASB) that joins (GAAP), and is governed by the (IFRS) foundation. Due to this convergence, (AICPA) believes U.S. adoption of a single set of high-quality, globally accepted accounting standards will benefit U.S. financial markets and public companies by enabling preparation of transparent and comparable financial reports throughout the world, (American Institute of CPAs, 2016). Secondly, (AICPA) is dedicated to supplying the whole accounting profession with information, tools and IFRS.com for instance to assimilate as well as implement a new set of standards. As the (AICPA) supports continual convergence of reliable accounting standards between (IFRS) and (GAAP) the mission of completion between (IASB) and (FASB) is prolonged. (AICPA) will always support funding mechanisms of the body-making

This essay will critically evaluate the adoption of International Accounting Standards by UK companies. IAS (International Accounting Standards) created by IASC (International accounting standards committee) are a set of standards stating how particular types of transactions and other events should be reflected in financial statements. Since 2001 the IASB (International Accounting Standards Board) succeeded the IASC to create the IFRS (International Financial Reporting Standards) which are “a single set of accounting standards, developed and maintained by the International Accounting Standards Board (the Board) with the intention of those standards being capable of being applied on a globally consistent basis—by developed,

IFRS is a set of accounting standards promulgated by the International Accounting Standards Board (IASB), an international standard-setting body based in London. It was designed as a common global language for business affairs so that company accounts are comparable and understandable across international boundaries (Ghosh, 2010). In June 2002, the European Union (EU) adopted an IAS Regulation requiring European companies listed in an EU/European Economic Area (EEA) securities market to prepare their consolidated financial statements in accordance with IFRS starting in 2005 (United Kingdom).

The International Financial Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan, Canada, and other world economic leaders. The IFRS is based on the tenets of understandability, reliability, and comparability. It is based off the International Accounting Standards (IAS) and had the opportunity to be built from accounting ideas and principles used across the world. In recent years it also has had the chance to look at the United States Generally Accepted Accounting Principles (GAAP) and modify the rules to enhance clarity and consistency, intentionally setting itself apart from U.S.

Within the accounting profession, there have been challenges to develop a set of standards that are generally accepted and universally practiced. Thus far, the main debate in setting accounting standards is “Whose rules should we play by, and what should they be?” While the answer is unclear, users of financial statements and reporting must find methods that has an universal objective, that allows “Grapes for Grapes” comparisons that clearly, fairly, and completely prepares a company financial statements. For years GAAP has been the common set of standards and procedures for the U.S, the core for establishing a principle of reporting but now IFRS an international friendly financial reporting system has become popular for its use globally.

IFRS or International Financial Reporting Standards is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). It is also the common accounting standard used by over 110 countries around the world.

What are the benefits for foreign firms to cross list in the US markets? Do the benefits remain after the SOX? Do you think the benefits would remain unchanged after the worldwide adoption of IFRS?

The effort of moving towards international convergence of accounting standards has risen since the end of World War II, resulting to the revolution of financial reporting. “IFRS for example are accounting standards issued by the IASB, an independent organisation based in London, UK” (Ball, 2006). IASB is primarily established to promulgate IFRS and are responsible to set rules that can be equivalently implemented by public companies internationally. Uniform accounting standards are simply demanded in order to produce a comparable accounting information as many big companies begin to enlarge their territory beyond their home country. Therefore, many professionals believe that a transparent and understandable financial reporting could be produced by using uniform standards. However, the competency of uniform standards alone in producing uniform financial reporting is arguable due to significant factors. The existence of varieties in capitalism by individual countries have restricted the ability of uniform standards in regulating local financial reporting. Plus, the distinction in institutional influences make it harder for uniform standards to work efficiently in various political conditions and to agree with different types of regional legal structures. Besides, cultures and religions also play an important role in accounting industry as they have the power to shape national economies. Therefore, regardless of many benefits that uniform standards could bring, there are

International Financial Reporting Standards (IFRS) describes a common method or modality by which the financial reporting of different business organizations is carried out. Initially, different countries used to have their distinct and separate standards of financial reporting. Financial reports are possibly obtained from the financial statements of any business organization. A financial statement as principle mode enables a company to present its f0inalncial information to the outsiders who may have the interest of having the knowledge of a company's financial status. They give the position of a company's financial status, comprehensive income statement, cash flow statement, and equity changes statement.

By eliminating many international differences in accounting standards, IFRS eliminate many of the adjustments people have made in order to make companies’ financials more comparable internationally. The adoption of IFRS reduced the cost for investors to process financial information. The gain would be extremely important for institutions that create large financial database. (International Accounting Policy Forum, 2006).

THE CHALLENGES OF ADOPTING INTERNATIONAL FINANCIAL REPORTING SYSTEM IN NIGERIA Anthony O. Garuba Department of Accounting and Finance, Western Delta University, Oghara, and Pat Donwa Department of Accounting, University of Benin, Benin City E-mail: anthonygaruba@yahoo.com Abstract Nigeria is going to adopt International Financial Reporting Standard (IFRS) from 1st January 2012. Globalization and Information and Communication Technology (ICT) has reduced the world to a global village. This has given rise to the continuous integration of the world economy and capital markets which has in turn given rise to increase in the interdependence of