ifrs’s mission is to provide accountability. They aim to bridge the informational gap between the management and the investors . the management possess a lot of insider information ,they have an upper hand and they could be selective in disclosing information pertaining to the companies financials manipulating earnings either for their own selfish motives( to earn their promotions) or ,to achieve the desired eps targets anticipated by the public .usually under pressure the management might adopt a conservative or aggressive approach in presenting the financial statements , which might not depict the current financial situation correctly , common grounds for manipulation being revenues , expenses , smoothen the earnings , play with operating
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Mature capital markets and developing economies like the BRICS (Brazil, Russia, india , china & south Africa ) are the real beneficiaries of the ifrs leaving underdeveloped economies question their adoption.Consent from a lot of parties is needed for its adoption often educational institutions , professional bodies , regulators , political parties do not provide their consent due to conflicts of interests .cost benefit analysis serves as a prerequisite before adopting any framework no different from this one , if the cost outgrows the benefits offered them often a nation might choose not to adopt. Some nations are willing to adopt but they do not have the required manpower , trained accountants who can facilitate such an adoption . the time lag between training and adoption sometimes is huge .developing and developed nations adapt to IFRS ( tweak their local laws , replacing them with some of ifrs regulations.while underdeveloped nations have no choice but to adopt ifrs as it is without any tweaking or alterations making them reconsider its adoption.many a times political unrest in a nation might want it to refrain from adopting ifrs knowing the aim of building investor confidence will not be facilitated in such an environment. A nation could be too conservative , resisting change in any form and not willing to let go of its local accounting policies and framework . historically one of the benefits of adoption such as the low cost of equity capital is not always seen again leading to some nations to choose not to adopt
Mature capital markets and developing economies like the BRICS (Brazil, Russia, india , china & south Africa ) are the real beneficiaries of the ifrs leaving underdeveloped economies question their adoption.Consent from a lot of parties is needed for its adoption often educational institutions , professional bodies , regulators , political parties do not provide their consent due to conflicts of interests .cost benefit analysis serves as a prerequisite before adopting any framework no different from this one , if the cost outgrows the benefits offered them often a nation might choose not to adopt. Some nations are willing to adopt but they do not have the required manpower , trained accountants who can facilitate such an adoption . the time lag between training and adoption sometimes is huge .developing and developed nations adapt to IFRS ( tweak their local laws , replacing them with some of ifrs regulations.while underdeveloped nations have no choice but to adopt ifrs as it is without any tweaking or alterations making them reconsider its adoption.many a times political unrest in a nation might want it to refrain from adopting ifrs knowing the aim of building investor confidence will not be facilitated in such an environment. A nation could be too conservative , resisting change in any form and not willing to let go of its local accounting policies and framework . historically one of the benefits of adoption such as the low cost of equity capital is not always seen again leading to some nations to choose not to adopt