IFRS An Overview. The term IFRS is an acronym for International financial reporting requirements. In this article you can fins all information for IFRS.
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IFRS An Introduction
The term IFRS includes
IFRS
REQUIREMENT FOR IFRS?
Globalization and liberalisation have caused substantial changes in the mindsets and perceptions of the corporate world. Due to advancements in the field of infotech, the whole world has ended up being a worldwide village. To be precise the entire world is a market with worldwide clients and global investors.In other words now whatever has become GLOCAL (worldwide local).
Business are getting listed at stock exchanges situated in different nations. They are likewise raising capital abroad across the globe.A basis understanding analysis and interpretation of financial declarations of those business are requirements prior to making such foreign investments, raising capital abroad etc.But financial declarations of those companies abroad will be mainly based upon the accounting principles and practices of the particular nation.
The difference in accounting concepts and practices and likewise the reporting requirements make the financial statements and reports unclear and hostile for the worldwide financiers. IFRS came into photo in India.
Main advantages of IFRS:
1. Reduces diversity in accounting practices.
2. Improves the quality and openness of financial reporting process.
3. Increase the trust and dependence placed by investors, experts and stakeholders in a company’s financial declarations
4. Reduces the expense of conversion of monetary declarations for local companies that makes financial investments, raising capital, listing abroad.
5. Supplies a drive to cross boarder acquisition and collaboration, alliances with foreign entities there by company as well as financial growth expands worldwide.
In a line the merits of IFRS are:
1. significance
2. completeness
3. understandability
4. reliability
5. Timeliness
6. Neutrality
7. Verifiability
8. Consistency
9. Comparability
10 Openness.
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