Question

Financial reporting practices are unlikely to converge globally, despite efforts to harmonize financial reporting standards, '' (adapted from Leuz, 2010).

Explain and critically discuss this statement in light of obstacles to uniform IFRS adoption across different countries and regions. Support your discussion with examples and insights from different academic studies.

Answer 1

The International Financial Reporting Standards (IFRS) and other accounting criteria that remain trained by each nation personally like IAS in India etc will never concentrate because we can notice any variations each moment. Some variations here within IFRS and Generally accepted accounting principles (GAAP): Inventory judgment: In IFRS LIFO scheme is not permitted but in US GAAP y'all can manage both of LIFO or FIFO. In International Financial Reporting Standards, if inventory is addressed poor it can not be changed in future but in US GAAP that can be Revenue perception: In International Financial Reporting Standards it is common but in US GAAP it is based upon the specific business others are in, Toward production agreement we do complete understanding approach in US GAAP however we produce to accept a portion of fulfillment process for all kind of designs in International Financial Reporting Standards.