The advantage and disadvantages of IFRS
Contents
The introduction 1
Summary 1
The advantages and disadvantages of UK adopting IFRS 2
1.The benefits of UK adopting the IFRS 2
1.1 Consistently and transparency 2
1.2 Flexible and Understandable 3
1.3 Global comparability 3
1.4 Decision making 4
1.5 Multinational corporation and cost 4
1.6 Impact the structure of company 5
2. The potential negative impacts that UK may face. 5
2.1 The high costs of converting to IFRS 5
2.2 Lack of comparability and inconsistency 6
2.3 The impact of investors and accountants 7
3. Conclusion 7
Reference 8
The introduction
I was required to write an article about the potential benefits and negative impacts of adopting the IFRS, and use UK as an example. I was really new to IFRS, so I did lots of literary review to find out what is IFRS and advantages and disadvantages that companies used. According to the situation of lots of companies begun to convert their financial reporting standards from Generally Accepted Accounting Principles(GAAP) to International Financial Reporting Standards(IFRS), so the impact of IFRS became the focus of investors.
I begin with a short description of IFRS and the history of EU and UK begun to adopt it, and then sum up huge information which i found form the internet, reports and books. I read it, edited it and integrated it. At the ‘pro’ side, I wrote the extraordinary success has been achieved in using a such comprehensive financial reporting. And on the ‘con’ side, i wrote the seriously problems which may be occurred in the process of adopting IFRS.
Summary
A various number of companies aournd the world have utilized IFRS as their basis for financial reporting. So there must be have lot of merits and drawbacks to apply it.
At the ‘pro’ side, IFRS use one accounting language company-wide, it will be more consistently and understandable for the companies which adopted IFRS. Due to the transparency and consistency, it will help accountants mor
The introduction 1
Summary 1
The advantages and disadvantages of UK adopting IFRS 2
1.The benefits of UK adopting the IFRS 2
1.1 Consistently and transparency 2
1.2 Flexible and Understandable 3
1.3 Global comparability 3
1.4 Decision making 4
1.5 Multinational corporation and cost 4
1.6 Impact the structure of company 5
2. The potential negative impacts that UK may face. 5
2.1 The high costs of converting to IFRS 5
2.2 Lack of comparability and inconsistency 6
2.3 The impact of investors and accountants 7
3. Conclusion 7
Reference 8
The introduction
I was required to write an article about the potential benefits and negative impacts of adopting the IFRS, and use UK as an example. I was really new to IFRS, so I did lots of literary review to find out what is IFRS and advantages and disadvantages that companies used. According to the situation of lots of companies begun to convert their financial reporting standards from Generally Accepted Accounting Principles(GAAP) to International Financial Reporting Standards(IFRS), so the impact of IFRS became the focus of investors.
I begin with a short description of IFRS and the history of EU and UK begun to adopt it, and then sum up huge information which i found form the internet, reports and books. I read it, edited it and integrated it. At the ‘pro’ side, I wrote the extraordinary success has been achieved in using a such comprehensive financial reporting. And on the ‘con’ side, i wrote the seriously problems which may be occurred in the process of adopting IFRS.
Summary
A various number of companies aournd the world have utilized IFRS as their basis for financial reporting. So there must be have lot of merits and drawbacks to apply it.
At the ‘pro’ side, IFRS use one accounting language company-wide, it will be more consistently and understandable for the companies which adopted IFRS. Due to the transparency and consistency, it will help accountants mor