Evaluate the Advantages and Disadvantages to a Company of the Adoption of International Accounting Standards
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- Date Submitted: 04/30/2016 06:37 AM
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Financial Accounting and Reporting |
Evaluate the advantages and disadvantages to a company of the adoption of international accounting standards |
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In this essay there will be an evaluation of the advantages and disadvantages to a company adopting the international accounting standards. I’ll be doing this through extensive research, looking through different sources such as text books and websites in order to help me write this essay.
IFRS are used in many parts of the world as common global language for businesses, making the business accounts a lot more understandable to be compared around the world in places such as Australia Hong Kong and the European Union, it is also mandatory for companies in the UK that are on the stock exchange to adopt the International Accounting Standards.
The adoption of IFRS has benefited investors as companies are starting to adopt the International Accounting Standards because it protects their investors and the financial statement of the company, they make sure that the right rules and regulation are being incorporated into the financial statement. This is going to be reviewed by the auditors and then given to the shareholders and other stakeholders of the company. Having one International Accounting Standard also disciplines companies, for example, if companies were allowed to create their own Accounting Standard, the market would suffer because most companies would engage in several misconducts; they would act upon what is best for their company, which could be misleading to investors.
The advantages to adopting the international accounting standards is that a business can present its financial statement and it will be on the same basis as another company in a foreign country especially if a company does business in multiple countries, making it easier for it to be compared with each other more accurately. This is an advantage as if these countries were to...
Financial Accounting and Reporting |
Evaluate the advantages and disadvantages to a company of the adoption of international accounting standards |
|
|
|
|
In this essay there will be an evaluation of the advantages and disadvantages to a company adopting the international accounting standards. I’ll be doing this through extensive research, looking through different sources such as text books and websites in order to help me write this essay.
IFRS are used in many parts of the world as common global language for businesses, making the business accounts a lot more understandable to be compared around the world in places such as Australia Hong Kong and the European Union, it is also mandatory for companies in the UK that are on the stock exchange to adopt the International Accounting Standards.
The adoption of IFRS has benefited investors as companies are starting to adopt the International Accounting Standards because it protects their investors and the financial statement of the company, they make sure that the right rules and regulation are being incorporated into the financial statement. This is going to be reviewed by the auditors and then given to the shareholders and other stakeholders of the company. Having one International Accounting Standard also disciplines companies, for example, if companies were allowed to create their own Accounting Standard, the market would suffer because most companies would engage in several misconducts; they would act upon what is best for their company, which could be misleading to investors.
The advantages to adopting the international accounting standards is that a business can present its financial statement and it will be on the same basis as another company in a foreign country especially if a company does business in multiple countries, making it easier for it to be compared with each other more accurately. This is an advantage as if these countries were to...