International Financial Reporting Standards (ifrs) New World Standard

IFRS is the New Global chronicle RuleThe liberalization and world(prenominal)ization of guinea pig economies marked by stiffer competition and tension and the entry of externally based companies or transplants across nations , resulted mainly to the world integration of economies , transnationalization of corporations cross-ownership and creation of global supply chains (Dunning , J . 1993 Because of these factors , the indispens ableness for a new set of global accounting encounters is needful to touchstoneize financial reporting procedures that can reflect and portray the standards of individual nations and at least provide a standard based on the consensus of all nations . This new set of global accounting standards refers to the International FinancialReporting Standards (IFRS ) issued by International Accounting Standards dining table which was initiated in as early as the 1970 sThe objective of implementing an international accounting standard is to enhance transparency of multinational companies that breeze in the global arena and hasten easier comparative digest of companies from different countries . Greater transparency go forth expand the companies rile to capital market and investments from around the world . On the other(a) hand , uniformity in financial reporting volition improve comparability of companies for easier financial evaluation of investors , financial analysts as well as economic experts from around the world . For managers , they will be given the opportunity to benchmark their company with other companies from another country and gain in depth insights on international best practices for financial managementGreater comparability will overly help facilitate the open source strategy in which a company s financial data will be made open to the public (e .g . via the mesh ) so that a global network of experts can collaborate in the scrutiny and scrutiny of the data and make the necessary recommendations for improvement or turn aroundThe bridal of a single language for financial reporting e .g .

IFRS follows the principle of the Internet technology which authentic the TCP /IP (transmission control communications protocol / Internet protocol ) network protocol , or the standard language that facilitate communication between computers connected to the network . Today , the Internet connected people beyond the bounds of space and term and have facilitated global communication . In the same style , IFRS is meant to facilitate global communication in the financial stadium and perspective . Incidentally , with the recent collapse of the investment banking phratry Lehman Brothers in the US , the US experiences a financial crisis . With the adoption of the IFRS , financial experts around the world will be able to better assess the economic impact of the US financial crisis in their respective countriesOne of the major criticisms of the IFRS is that provides principles that are too bountiful , which being subject to many interpretation would lead to differences and thereby defeat its main goal of standardizing the financial language . The international nature of the IFRS is principally what makes its standards broad because apparently , the International Accounting Standards Board cannot simply impose a certain rule based on the American experience or European experience but must consider all the part countries around the world . The...If you want to get a beat essay, order it on our website: Ordercustompaper.com

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