Ifrs Adoption Challenges Ifrs - 755 Words

IFRS Adoption Challenges When it comes to IFRS adoption challenges our research has shown that, while the U.S. adoption of IFRS may bring many benefits, several challenges must first be overcome. Some of the most notable of these challenges include the Security Exchange Commission’s apparent diminishing support, the sheer cost of implementation for corporations, overcoming the belief that IFRS adoption would sacrifice the â€Å"gold standard† of U.S. GAAP, and a lack of enforcement. The SEC drafted its new strategic plan for the next 4 years in February 2014. In doing so, it appeared to be backing away from its earlier plan to support IFRS (Chasan, 2014). This becomes evident by contrasting the SEC’s 2010-2015 plan with its new plan. The 2010-2015 plan reads: The agency will promote high-quality financial reporting worldwide through, among other things, support for a single set of high-quality global accounting standards and promotion of the ongoing convergence initiatives between the FASB and the International Accounting Standards Board. Conversely, the SEC’s most recent plan states: The agency will work to promote higher quality financial reporting worldwide and will consider, among other things, whether a single set of high-quality global accounting standards is achievable. Clearly, the SEC’s priorities have changed regarding IFRS adoption. Not only is there waning support for IFRS from the SEC, there is also considerable opposition from corporations that would be affected byShow MoreRelatedChallenges in Adoption of Ifrs in Nigeria3452 Words   |  14 Pages1596-8303. www.transcampus.org/journals. www.ajol.info/journals/jorind 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 TechnologyRead MoreIfrs- Problems and Challenges in First Time Adoption964 Words   |  4 PagesArticle on â€Å"IFRS- Problems and Challenges in First Time Adoption† Prepared By: Asst. Prof. Sumit Acharya. Shree Swaminarayan Institute of Management Porbandar E-mail: sumit.sim@gmail.com IFRS- Problems and Challenges in First Time Adoption * Sumitkumar S. Acharya A B S T R A C T Trust and transparency led to a discussion of the fundamental purpose of financial reporting. Consistent, comparable and understandable financial information is the lifeblood of commerce and making investmentRead MoreFacilitating The Adoption Of Ifrs869 Words   |  4 PagesFacilitating the Adoption of IFRS/IAS International financial reporting standards (IFRS) are the attempt of the International Accounting Standards Board (IASB) to globally harmonize accounting standards and financial reports (Doupnik Perera, 2014). 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In his work, Barry (2009, p.26-27) states, â€Å"The a dvantage of a single set of financial reporting standards are manifest, particularly as internationalization of business activitiesRead MoreIfrs Of The Us And The World : Political And Economic Forces Shape Accounting1542 Words   |  7 PagesIFRS in the US and the World Political and economic forces shape accounting. The increased worldwide integration of politics and markets raises the necessity for integration of financial reporting standards. The integration is driven by the reductions in the costs of information processing and communication. 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In 2-3 pages (12-pt type, double-spaced) answer the following questions: 1. Describe the process that your selected country went through to adopt IFRS, such as how long it took for the country to fully adopt IFRS. IFRS’s are a single set of accounting standards at a global level for all sectors. Accounting standardsRead MoreShould China Adopt International Accounting Standards?.1532 Words   |  7 Pagesthe new International Financial Reporting Standards (IFRS) as new international accounting standards after 2001. In 2006, the Chinese government issued a new set of Accounting Standards for Business Enterprises (ASBE) which are substantially consistent with IFRS. As mentioned in the scholarly article of Li and Sun (2011), there are some primary differences between Chinese accounting standards and international accounting standards: the adoption of fair value , the accounting methods for the businessRead MoreThe Impact Of Foreign Exchange Gains And Losses On Profitability1715 Words   |  7 PagesGas Industry because both IAS 21 - The effect of changes in foreign exchange rates and FAS 52 - Foreign currency translation make it a requirement for these companies to identify a single currency as the functional currency. However, while IAS 21 (IFRS) requires an entity to consider various indicators and prevailing economic circumstances in the determination of functional currency, FAS 52 (US GAAP) allows for use of judgement in the determination of the functional currency. Considering the natureRead MoreThe For The Indonesian Financial Accounting Standards Board1042 Words   |  5 Pagesin 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. 1.1 Confidence of investors IFRS could generate some benefits to investors for many