Financial Advantages Of IFRS

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Register to read the introduction… However, there definitely are crucial advantages of the IFRS. To begin with, on the whole the financial statements are of higher quality, more reliable, understandable, complete and objective. The use of IFRS implies a high degree of confidence in the provided information. Another thing is that there exists a comparison possibility of financial data between entities that have adopted the standards. Also users of financial statements that are not aware of the Bulgarian GAAP would safe time, effort and resources to interpret the information. This would enhance the communication and trust between Bulgarian and foreign companies and therefore boost international investments. Entrepreneurs seeking high returns in emerging economies would gladly consider Bulgarian markets as prospective targets. Moreover, large companies from the European Union planning to expand in developing economies of the new members will prefer to look at financial statements produced according to IFRS. When selecting a partner, merger or acquisition target they will consider safety, reliability etcetera, which are ensured by the new …show more content…
Steps have to be taken in order to help and position the blooming economy, and the introduction of the IFRS is the first and maybe one of the most important ones for the integration of Bulgaria in the economy of the European Union and the rest of the world.
However, there has been an ongoing discussion among the Bulgarian business society and media and although everybody realizes the advantages and benefits that come along with the new standards, the small and medium enterprises were said not to be capable to last the change yet. Therefore the IFRS were made compulsory only for listed companies and the small to medium businesses were left the free choice whether to use it or the Bulgarian GAAP. There were several reasons for that, which were not
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It is not hard to draw the conclusion that the introduction of the IFRS for small to medium entities is a difficult achievement. Even the World Bank states that neither now, nor even in the foreseeable future would a possibility exist for such a drastic change to occur in any country in the EU. The accountants of these businesses have to be trained to understand and use the standards which points to an educational problem which might turn out to be very difficult to implement. A skilled expert in the field of Bulgarian GAAP will not be an expert in the IFRS which underlines the urgent

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