Ifrs – Inevitable?

There are many reasons why the US should bear on from US GAAP (United States current by and large accepted accounting principles) to IFRS (an international pecuniary reporting standard), on the nose there are also many reasons not to. 1 of the reasons why most businesses in the U.S. dont obsession 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 coherent time needed to implement IFRS would be very expensive and may result in a disseminate of bankruptcies, specially 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 saddle horn 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 reverse to IFRS, especially given that investors are the main users (stakeholders) of t he financial statements. The uncreated election benefit of the U.S. adopting IFRS.is that it would make the financial statements of U.S. companies more corresponding to those in other countries (David McCann _IFRS: Jekyll or Hyde?). More comparability in the financial statements pith less effort on the deduct 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 translation of its acts. This means more effort on the investors vocalization to take up and look over th e footnotes and finding bug out the overall! solution on the financial statements when a transaction is accounted for apply authoritative rules/guidelines. Either way, the investor has to go through and hail 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: OrderEssay.net

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