Question

What is the IFRS convergence process?

Answer 1

IFRS (International Financial Repoting Standards) are issued by the London based board named as International Accounting Standards Board. the covergence process of IFRS with the specific country is a lengthy and a complex process. Every country has its own Accounting Standard board which formulate the Accounting Standardrds for the whole country to bring the uniformity in a country. so this Accouting Standard board has to converge with the IFRS. Some steps that the Accounting standrad follows are as follows -

1) checking the global integration of the country and keeping in mind the key integrated area of the country

2) Study the IFRS whether they will be suitable as per the need of the economy of the country.

3) study the country's own Accouting Standards to ckeck the integration of them with the IFRS

4) Conversing the Accounting Standards with the IFRS to bridge the gap of Home AS and IFRS.

These are the steps that are followed to converge the IFRS to bring the uniformity in the commerce of the whole country with the global scenerio.