HA3051 Assignment, This assignment is to be conducted between two people. The assessment carries 20% of the total assessment for this subject. The assignment is due week 9 (by Friday 18 th January)....

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Global Accounting Standard
Arguments and Evidence
Summary
A strong and efficient accounting standard helps the corporate world to disseminate
information and
ing transparency in the system during the process of financial reporting.
Switching to IFRS will give the momentum to the companies across and get updated on the
ecent developments in the market at the international level. International Financial Reporting
(IFRS) do help the securities and regulators pertained to the financial market at international
level coin the rules and regulations from time to time in order to protect the interest of the
investor and
inging the transparency in the system. The benefits of adopting IFRS over the
nation GAAP are many. It helps to understand the business prospective from a global point.
More over there are many weak areas in the nation GAAPs which is being addressed in IFRS.
Hence implementing IFRS as a uniform tool for accounting has lots of challenges to be faced
and addressed from time to time. However in the developed counties, the initiation already
started towards adopting of IFRS. Countries like U.S.A have declared converting to IFRS
from US GAAP and also assessed the advantages and disadvantages of conversion in the year
2009 (The benefits and drawbacks of conversion from GAAP to IFRS, 2009). Converting to
IFRS has lots of importance and benefits to stakeholders till the regulators. Hence it has
ecome an increasing challenge for everyone for transfe
ing to IFRS platform going
forward.
Introduction
Uniform accounting standard across the globe has lots of implication towards
eaping the benefits of uniformity of the accounting transactions. Implementing a particular
set of standards with high quality for all the companies at the global level has the opportunity
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of being transparent and financial information comparability in order to help towards the
eduction in preparation cost of financial statement. A stringent compliance fetches
qualitative information, which will help for better decision making. As a result, the funds
deployed in the market are very efficient, which will support cost of capital at lower cost.
Such activities had supported adoption of international financial reporting standards (IFRS)
towards the financial reporting in European Union for the consolidated listed entities.
Adoption of IFRS since 2005 when they became the legally required accounting standards for
over 6,000 EU firms and for firms in several other countries including Australia and South
Africa ,
ought consistency and transparency. The proof of influence of IFRS towards the
capital market efficient operations, information pertained to share prices and return along
with international investor activities and securities analysts. IFRS impact on developing
markets and countries where the economy is grooming with a better capital market, have
etter relevance in evaluating IFRS role before and after the 2007-2008 financial crisis.
Hence there is encouragement from nook and corner of the globe to set the financial reporting
platform with the help of the IFRS platform. It has been proven that the difference between
the national GAAP and IFRS has huge gap in terms of consistency and transparency. IFRS
overcomes the benefits offered by national GAAP and it
ings such a comfortable zone for
the international investor to
ing in the right platform for them.
Points of discussion
A question arises with respect to IFRS changing the environment of information
availability to every participant in the financial market and benefiting the market with the
help of IFRS used and the efficiency which is
ought in place? There are expectations with
espect to information provided by firms after adopting IFRS is more beneficial as compared
to the national GAAP. This is because of the difference in IFRS and GAAP national
standards, which...