ACCOUNTING

Accounting

Table of Content

Table of Content2

Introduction3

Discussion3

Multi-GAAP Reporting4

Versatility5

Complete Audit Trails5

Other Arguments6

Human Resources6

Legal7

Treasury7

Tax7

Conclusion8

References9

Accounting essay writing

Introduction

Since the early 1970s, the International Accounting Standards Board (IASB) and its predecessor, the International Accounting Standards Committee, have worked to develop a single set of international standards, the IFRS. The world's capital markets ebb and flow continuously, and participants in that marketplace must have access to financial information that faithfully reflects their economic performance, is consistent among companies around the globe, and is governed by a trusted and respected authority of corporate compliance. This massive international endeavor is one of unprecedented scale and complexity—one that is now bearing fruit, despite some minor setbacks. These setbacks have included, for example, the well-publicized amendments to International Accounting Standards (IAS) 39: Financial Instruments: Recognition and Measurement. Nevertheless, IFRS have gained acceptance and traction in all major regions of the world.

Discussion

International Financial Reporting Standards (IFRS) ,a set of international accounting and reporting standards that will help to harmonize company financial information, improve the transparency of accounting, and ensure that investors receive more accurate and consistent reports. Statements of International Accounting Standards issued by the Board of the International Accounting Standards Committee (IASC) between 1973 and 2001 are designated International Accounting Standards. The International Accounting Standards Board (Iasb) announed in April 2001 that its accounting standards would be designated International Financial Reporting Standards (IFRS). Also in April 2001, the IASB announced that it would adopt all of the International Accounting Standards issued by the IASC.

Multi-GAAP Reporting

Not only must a company's management comply with the specific accounting policies and procedures required by IFRS, but they may also need to simultaneously continue reporting based on GAAP requirements. This multi-GAAP reporting requirement makes implementing IFRS particularly challenging. Many companies in the EU and elsewhere will not only need to continue using local GAAP in their reporting for tax purposes, but they will also need to prepare financial statements based on IFRS. Those companies that have U.S. parentage or that are listed on U.S. stock exchanges could be burdened with additional required reporting based on U.S. GAAP. And as the U.S. and Canada transition to IFRS, companies run a significant risk of material misstatement. Additional complexity arises when local gover when slight differences exist between local GAAP and IFRS. (McGregor,2006)

Versatility

There are significant differences in how reports must be presented, depending on which set of GAAP is being applied. For example, IAS 1: Presentation of Financial ...