Ifrs – Inevitable?

There are many reasons why the US should stir from US GAAP (United States current broadly accepted accounting principles) to IFRS (an international pecuniary reporting standard), precisely there are also many reasons not to. 1 of the reasons why most businesses in the U.S. dont compulsion to switch to IFRS is simply because they dont want to go through the hassle and costs of implementing and applying IFRS. The first couple long time needed to implement IFRS would be very costly and may result in a lot of bankruptcies, especially in this economy where some companies are struggling anyways. On the other(a) hand, many others in the U.S. think that moving to IFRS is the next and trump step towards a more understanding set of financial statements across countries.
Investors
It is very important to consider the investors when weighing the options of transposition to IFRS, especially given that investors are the main users (stakeholders) of the financial statements. The primary election benefit of the U.S. adopting IFRS….is that it would make the financial statements of U.S. companies more comparable to those in other countries (David McCann _IFRS: Jekyll or Hyde?). More comparability in the financial statements pith less effort on the part of investors in trying to understand those differences in the statements.



This would make an investors job, of comparability two companies to see which one is better, a lot easier.
On the other hand, IFRS financial statements have twice as many footnotes as US GAAP due to interpretation of its transactions. This means more effort on the investors part to take up and look over the footnotes and finding out the overall solution on the financial statements when a transaction is accounted for using authoritative rules/guidelines. Either way, the investor has to go through and know the financial statements completely, which takes a lot of time whether their prepared using U.S. GAAP or IFRS.
IFRS is more convenient for investors because if U.S. companies are...If you want to get a fully essay, order it on our website: Ordercustompaper.com



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