Week 2 assignment The EFFECTS of IFRS ADOPTION in FRANCE 
the effects of ifrs adoption in France
Boussarsar anis acct525 may 9, 2015
DR. Jones K. Kasonso
the effects of ifrs adoption in France
Introduction
The problem to be investigated is adoption of IFRS in France and its effects on the French companies. IFRS are “A set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board.” (Investopedia, n.d.)
The essential purpose of accounting is to provide internal and external information to the company.
Thus, the accounting information system collects, processes, maintains, and disseminates information designed according to their nature:
Within the company: the entrepreneur , business leaders , executives and managers,
Staff and their representatives.
Outside the company: the state and the tax authorities , bankers and credit agencies, to partners and / or shareholders , suppliers , customers , professional bodies , local authorities ...
In this context, the traditional accounting model quickly showed its limits. This led the European Union in imposing IFRS for all listed European companies, from 2005 at the latest.
These standards are in fact intended to enable investors to better understand the economic reality of businesses. They must also facilitate the comparison of performance firms internationally and allow better evaluation of their growth opportunities.
This study deals with the relevance of the decision of the European Union to impose the use of IFRS for all listed French companies.
In a first part, we will address the process adopted by France for the application of IFRS, in a second part, we will be interested in the effect of this adoption on the French firms and the capital market, and then we shall study the possibility of adoption of IFRS by US SEC.
The process that France went through to adopt IFRS :
France has adopted IFRS as
Boussarsar anis acct525 may 9, 2015
DR. Jones K. Kasonso
the effects of ifrs adoption in France
Introduction
The problem to be investigated is adoption of IFRS in France and its effects on the French companies. IFRS are “A set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board.” (Investopedia, n.d.)
The essential purpose of accounting is to provide internal and external information to the company.
Thus, the accounting information system collects, processes, maintains, and disseminates information designed according to their nature:
Within the company: the entrepreneur , business leaders , executives and managers,
Staff and their representatives.
Outside the company: the state and the tax authorities , bankers and credit agencies, to partners and / or shareholders , suppliers , customers , professional bodies , local authorities ...
In this context, the traditional accounting model quickly showed its limits. This led the European Union in imposing IFRS for all listed European companies, from 2005 at the latest.
These standards are in fact intended to enable investors to better understand the economic reality of businesses. They must also facilitate the comparison of performance firms internationally and allow better evaluation of their growth opportunities.
This study deals with the relevance of the decision of the European Union to impose the use of IFRS for all listed French companies.
In a first part, we will address the process adopted by France for the application of IFRS, in a second part, we will be interested in the effect of this adoption on the French firms and the capital market, and then we shall study the possibility of adoption of IFRS by US SEC.
The process that France went through to adopt IFRS :
France has adopted IFRS as
References: Cormier, D., Demaria, S., Lapointe and Teller, R (2009) First-Time Adoption of IFRS, Managerial Incentives and Value- Relevance: Some French Evidence, Journal of International Accounting Research, 2009, 8(2), 1-22 Chiapello E. (2005b), « Transformation des conventions comptables, transformation de la représentation de l’entreprise », in Capron et al., Les normes comptables internationales, instruments du capitalisme financier, La Découverte, Paris, pp. 121-150. EC Regulation 1606/2002 amended by EC Regulation No.297/2008 of March 11, 2008.Retrievedfrom:http://www.focusifrs.com/menu_gauche/normes_et_interpretations/que_sont_les_ias_ifrs/procedure_d_adoption_au_sein_de_l_ue (01/17/2013) PwC (October 2014).IFRS Adoption by Country. Retrieved from http://www.pwc.com/en_US/us/issues/ifrs-reporting/publications/assets/pwc-ifrs-by-country-2014.pdf RICHARD J. (2005a), « Les trois stades du capitalisme comptable français », in Capron et al. Les normes comptables internationales, instruments du capitalisme financier, La Découverte, Paris, pp. 89-119. RICHARD J. (2005b), « L’Union Européenne mise aux normes américaines – Une comptabilité sur mesure pour les actionnaires », Le Monde diplomatique, novembre, pp. 26-27. http://www.investopedia.com/terms/i/ifrs.asp