Week 2 Assignment
Read “New IASB Leader Embraces Challenges” which can be accessed through the DeVry online library. Choose a country that has already adopted IFRS. In 2-3 pages (12-pt type, double-spaced) answer the following questions:
1. Describe the process that your selected country went through to adopt IFRS, such as how long it took for the country to fully adopt IFRS.
IFRS’s are a single set of accounting standards at a global level for all sectors. Accounting standards are trustworthy statements is the reflection of financial statements to be presented to the stakeholders . United kingdom has already adopted IFRS since 2005.I would be discussing on adoption of IFRS by United kingdom for this paper. The United …show more content…
Yes, the US SEC should adopt IFRS because the IFRS are a set of uniform, principle-based standards that are applied time after time by companies in the adopting countries. The standards are believed to “improve international financial reporting and transparency, increase international comparability, and contribute to more efficient global financial markets” (Alon, Anna). When United Kingdom adopted IFRS from the year 2002 through 2005, the UK company’s did experience confusion and a burden on their companies. Nevertheless, the main reason for the confusion was mainly due to IASB’s (International Accounting Standards Board) failure to finalize many of their rules. After the adoption of IFRS all the companies ended up going smoothly and successfully. Like previously stated, after the adoption of IFRS it made the international financial reporting standards easier to compare, it is globally understood, and it “helped multinational businesses to stay up to date and competitive in the globalization of markets” (Albrecht, David.).
5. What is your personal opinion regarding whether the US SEC should mandate the adoption of IFRS?
My personal believe regarding whether the US SEC should adopt the IFRS is that by developing IFRS the financial statements are more accurate, timely and comprehensive that is relevant to the national standards.