Nobody downloaded yet

The Reasons for Adopting a Single Set of International Financial Accounting Standards - Essay Example

Comments (0) Cite this document
An essay "The Reasons for Adopting a Single Set of International Financial Accounting Standards" claims that the widespread adoption of the International Financial Reporting Standards by different countries has elicited debate over underlying reasons for the global convergence towards the system…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.8% of users find it useful
The Reasons for Adopting a Single Set of International Financial Accounting Standards
Read TextPreview

Extract of sample "The Reasons for Adopting a Single Set of International Financial Accounting Standards"

Download file to see previous pages The preceding arguments will employ IFRS as a proxy to IAS. The structure of the paper will comprise of the discussion and the conclusion. The discussion section will critically evaluate presented reasons for the adoption of IFRS. The Key highlight of the reasons will include: IRFS advancement of timely information for investors, better quality accounting, comparability, improved earning and management, political incentives and the capital market benefits. The essay will conclude with a summary of the identified driving factors for the implementation of IAS. According to Chua and Taylor (2008), IAS highly promotes timely access to information by investors. The adoption of a single set of IAS enhances the evaluation of companies across regions by investors based on a single standardized accounting framework. IAS underpin timeliness through the standardization of accounting procedures and reporting formats thereby eliminating time lag that has traditionally emanated from the analytical adjustment of the financial statements for the purposes of international comparison. Apart from time aspect, the existences of IAS also leads to cost reduction that could have been incurred in the processing of the financial information in a manner that will allow comparison to be conducted. In light of the globalization effect, it is further imperative that the multinationals adopt a single accounting standard that reconciles financial statements globally across their entire branch network. The provision of financial statement on single IAS further underpins the significance of the value relevance for investors. According to Edwards (2009), value relevance refers to the ability of the financial information documented in the financial statement to adequately expound on the predominant parameters in the stock market. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Reasons for Adopting a Single Set of International Financial Essay”, n.d.)
The Reasons for Adopting a Single Set of International Financial Essay. Retrieved from
(The Reasons for Adopting a Single Set of International Financial Essay)
The Reasons for Adopting a Single Set of International Financial Essay.
“The Reasons for Adopting a Single Set of International Financial Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Reasons for Adopting a Single Set of International Financial Accounting Standards

Financial Reporting - International Accounting Standards

...of the Framework and International Financial Reporting Standard for small and medium entities. Challenges A financial reporting system should focus on the needs of all capital providers and not just for a class of people. International Accounting Standards Board was set up with the sole mission to develop, in the public interest, a single set of high quality, understandable and international financing reporting standards for general purpose financial statement. International Accounting...
12 Pages(3000 words)Essay

International Accounting Standards

...? International Accounting Standard – 17 Accounting for Leases IAS 17 - Leases The objective of IAS 17 is to suggest, for lessees and lessors, an appropriate accounting treatment and disclosures to apply when accounting for leases. The objective of the standard seems to be quite clear on the matter. Before the standard was introduced; different treatments where in practice to deal with the matter of leases. The difference caused the Financial Statements to be un-comparable and increased chances of window dressing the accounts. Many instances were reported by the relevant...
7 Pages(1750 words)Essay

Unified Financial Accounting Standards

...(Ingram, & Albright, 2007). As such, various organizations seek to establish different business and financial measures to define the universal manner of doing global business. Financial accounting standards are some of the measures, which all companies must comply with while doing business, assessing their progress, and reporting their success. Financial accounting standards seek to establish fairness, equality, uniformity, accuracy, and transparency in the preparation and presentation of financial statements. As such, financial accounting standards must...
5 Pages(1250 words)Essay

International Accounting Standards

...of fair value accounting system and the arguments for or against the decision of inclusion of the fair value concept in the financial reporting. The fair value system has all together improved the information to the individual users of the economy. International Financial Reporting Standard (IFRS): IFRS is a private sector organization which is working for the interest of public. The main objectives of IFRS foundation are: 1) It creates a single set of quality which is understandable and enforceable worldwide. The standard setting body that helps in formulating the...
16 Pages(4000 words)Essay

International Financing Reporting Standards

...organizational profits in the short run. This means that the organization cannot make profits which jeopardize its future operations (Ben-Amar &Zeghal, 2011). Such managers, as the IFRS dictates, do not have the capacity to serve in these positions. Quality of the standards Having the mandate of protecting the investors in the United States, the SEC makes sure that all standards adopted in the financial sector are highly cognizant of the relevant needs of the industry. A close evaluation of the IFRS by a commission under the SEC ascertained the quality of IFRS and consequently recommended them for adoption in the US financial sector in...
15 Pages(3750 words)Research Paper

Convergence of Accounting Standards

...projects undertaken between the IASB and the FASB, and the UK accounting standards and the International Accounting standards. History The FASB is the private sector standard-setting body in the USA. It was established in the year 1972. The standards that FASB sets put recognition, measurement and disclosure principles to be at the heart of preparing the financial statements. The IASB was created when the erstwhile IASC was restructured. The IASB was delegated the responsibility of producing a single set of high quality, understandable...
7 Pages(1750 words)Essay

Financial Accounting Standards

...Principles for the public interest of the country. However, the difference is that while GASB sets standards for financial accounting and reporting at the state and local government level, FASB does the same job for the private sector which includes not-for-profit bodies as well as public and private entities.. Thus, both organizations aim to create and improve standards of providing useful information not only to the public but also of use to issuers and auditors of these financial reports. Both organizations are set-up as non-profit institutes. Because of their status as private, they work to develop...
4 Pages(1000 words)Essay

International Accounting Standards

..., which is unique to each country, to the UNDERSTANDABILITY based international financial reporting standards has been set to January of the year 2005. Some countries can defer their compulsory implementation of the international financial reporting standards until the year 2007. The Accounting Standards Board stated that European companies that have given debt securities on a regulated stock market of member states. Another group that is allowed the privilege to delay the implementation of the international financial reporting...
16 Pages(4000 words)Essay

International accounting standards

...Will there be a change to the organizations which set accounting standards and/or a change in the power structures within the standard setting process as a result of the current financial crisis Introduction: The purpose of this paper is to try and understand the implications the prevalent global financial crisis will have on the organizations that are placed in order to determine the accounting standards for firms to follow. Now, in the U.S., the applicable regulations are Generally Accepted Accounting Principles, while in Europe they are the International Financial Reporting Standards. However, we will be focusing more on the International Financial Reporting Standards in Europe which are surveyed and controlled... the...
6 Pages(1500 words)Research Paper

U.S. Adopting the International Financial Reporting Standards

...U.S. Adopting the IFRS of Contents Contents 2 Introduction 3 Pros of IFRS 3 Cons of IFRS 5 Recommendation 6 References 8 Introduction When one speaks of accounting standards in the USA, the debate often arises as to which one of the two is better. One format is the rules based accounting system or the US GAAP (Generally Accepted Accounting Principles) while the other is the principles based accounting format that is yet to be introduces, the IFRS (International Financial Reporting Standards). The US GAAP is a standard for financial...
6 Pages(1500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Reasons for Adopting a Single Set of International Financial Accounting Standards for FREE!

Contact Us