Ifrs Is an Opportunity Essay

3189 Words Apr 8th, 2013 13 Pages
1.0) INTRODUCTION 1.1) Background and Overview
“All families are alike, and all families are different” said Wayne Upton, Director of International Activities for the International Accounting Standards Board (IASB). It means that every country have their own accounting standards. There are many accounting standards in the world, with each country using a version of their own generally accepted accounting principles, also known as GAAP. Dissimilar financial reporting and accounting practices make it very difficult for users of accounting and financial reports to consolidate such information and make comparisons of firms that are listed in different countries (Prather-Kinsey, 2006). The complication arises when the firm does
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This group was succeeded by the International Accounting Standards Board (IASB) in 2001. One of the challenges facing the conversion to IFRS is ensuring that the IASB has a stable source of funds for the future. The primary purpose of the IASB is to promulgate IFRS and IASB need to reports directly to the IASC Foundation. Two actions by the Securities and Exchange Commission (SEC) during 2007 accelerated the timeframe (Appendix 1) of potential conversion from GAAP to IFRS. As it is known today, IFRS consists of nine IFRS and forty-one IAS (Appendix 2), of which some have been superseded. As with the FASB, a strict code of due diligence is employed during the promulgation process.
Today, more than 12,000 companies in almost a hundred countries have adopted IFRS and most of the countries have local standards that are based on IFRS. Those countries that have adopted IFRS include Australia, New Zealand, Israel and the European Union states. Besides, the standards are also used by emerging economies such as Korea, India and Canada have announced IFRS convergence by 2011. Significantly, the United States too has endorsed convergence, setting 2014 as its deadline to move from US GAAP to IFRS if they reached a decision in 2011 to adopt IFRS.Japan also has adoption efforts underway for the near

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