The future of IFRS (Iinternational Financial Reporting Standrads)

Gorgieva-Trajkovska, Olivera and Georgieva Svrtinov, Vesna and Dimitrova, Janka (2013) The future of IFRS (Iinternational Financial Reporting Standrads). Јубилејна меѓународна научнопрактична конференција-Финансиите и финансиското сметководство-состојби,тенденции, перспективи, Стопанска академија Ценов, Свиштов, Бугарија, 2013. ISSN 978-954-23-0910-9


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A universal ‘financial language’ offers many well-documented advantages. Cross-border businesses benefit from reduced preparation costs, and cross-border trading in securities increases as international investors can more readily compare the performance of companies based in different countries. In turn, it is argued that this results in increased market efficiency and a reduction in the cost of raising capital for companies, which ultimately helps to boost growth. The rapid spread of IFRS around the globe in the past decade means that those benefits are no longer theoretical as a growing body of research shows they are increasingly evident in practice. Today well over 100 countries – including more than two-thirds of the G20 – require or allow their listed companies to prepare annual financial statements based on IFRS. But momentum has slowed as major projects have stalled and the US and other significant economies have become hesitant as they consider whether or not to commit to IFRS. Against this backdrop, a range of important questions are now being asked about where the IFRS project goes from here. Turning the vision of a truly global set of standards into a reality involves huge challenges that are likely to require significant organisational change at the IASB , alongside constructive commitment by all key stakeholders around the world. U.S. investors expect the country will eventually support International Financial Reporting Standards, but the process will take time and require substantial investment in staff and training, according to new research from the Association of Chartered Certified Accountants. More investors believe the eventual adoption of IFRS in the USA will result in a net benefit to the American economy than not. In ACCA’s view, U.S. adoption of IFRS would give a tremendous boost to the cause of globally comparable financial reporting, and more importantly, the US and world economies. ACCA has repeatedly called for putting investors at the heart of the standard-setting process globally. Key words: IFRS, future, adoption, convergence, setting process

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Olivera Trajkovska
Date Deposited: 23 Dec 2013 14:57
Last Modified: 23 Dec 2013 14:57

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