Ifrs Vs. Gaap Ifrs

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Issues like extraordinary loss or gain which are not issued and allowed in the new IFRS still remain as an issue. Another important and major disadvantage of adopting or converting to IFRS makes the IASB the monopolist in the sense of setting the standards. And this will be more solid if the US companies adopt IFRS. And if there is competition, such IFRS vs. GAAP that are up on national level, there is more chance of having relevant, reliable and useful information that would be produced while the companies are in the course of competition. And even though the companies and countries are incurring big and huge transitional costs, the benefits of IFRS can not be seen until later point because of the fact that it takes some years for the harmonization and to have enough and sufficient years of financial statements to be made under IFRS to benefit and improve consistency. Their main problem of converting to IFRS that has stressed with high importance is the usage of fair value as the primary basis of liability and asset measurements. And the spectators and interviewers think that this principle will bring increased volatility as the assets are reported. And there is another disadvantage of IFRS is that IFRS is quite costly and complex, and if the companies are going to adopt IFRS or required by small and medium sized businesses, it will be a huge disadvantage for SMEs as they will be hit by the large transition costs and the level of complexity of IFRS would not be absorbed

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