IFRS

IFRS

IFRS

Introduction

International Financial Reporting Standards is the combination of accounting standard. It states that how different types of the transaction and other accounting events should be reported in the financial statement. It is declared by the International Accounting Standards Board.

International Financial Reporting Standards (IFRS) aspires to bring the entire nations in the world under a similar set of global accounting standards that presents consistency, transparency, and compatibility in financial reporting system. According to a fact financial regulators in several countries have generated high demand for IFRS compliant financial statement (David, Christopher, 2008).

The International Financial Reporting Standard (IFRS) for Small and Medium size corporations published as an introductory plan by the IASB in 2007. This system introduced and designed for companies that have no public accountability. If the company's shares or debts listed and floated in the public exchange or financial institution company only then there would be Public Accountability. The IFRS for SME (IFSME) have capabilities to apply in the large range of private organizations (David, Christopher, 2008).

In 113 countries, more than 12,000 companies have implemented IFRS in some degree, and many other countries are enduring to implement the standards each year with the expectation of increased comparability of financial statement.

Discussion

There have various arguments that organizations are migrating and adopting IFRS before they came mandatory. One of the most significant arguments is globalization, as many organizations across the world have migrated and implemented IFRS (Alan, Susan, 2007). If Organizations in USA switch IFRS it could make transactions with the organizations that operate under IFRS much easily. It may provide organizations and stakeholders in other nation's better economic indicators as to how organizations here is the US are doing (Keith, 2007).

There is another advantage IFRS give productivity and clarity. Under IFRS financial analyzers use their own expertise judgment as to how handle specific transactions. This may lead to lesser time that is being spent trying to follow all the rules that are couple with rule based accounting. It may allow all the organization to prepare financial information to keep statement in simple and understanding form for other investors and other organizations interested in saying organizations financial statements (Keith, 2007).

The Biggest con about organizations in the US migrating to IFRS is that current and future accountant will have to re-learn how to perform their tasks. This does not seem a greater problem but it is for sure something to give consideration. If organizations are willing to pay for their accountants to go back and train themselves in school it will be cost incurring. They would have seen decline in the profit. During the first years when they switch to IFRS as their accountants will still be learning how to prepare financial statement under IFRS.

The switch over to IFRS may be a complicated one, but in the end, it will offer more understandable financial statement and will lead to true financial status. It would also make dealing with international corporations much smoother, globalization in other words.

IFRS ...