Question

Even a number of countries claiming the use of IFRS in their financial reporting, we should not take this on its face,

would you agree or disagree with this and why?

Answer 1

Disagree, there are various advantages of following IFRS -

1. It benefits the economy by increasing the growth of its international business.

2. By encouraging the international investors to invest, it leads to more foreign capital flows to the country.

3. Financial statements prepared using a common set of accounting standards help investors better understand investment opportunities as opposed to financial statements prepared using a different set of national accounting standards.

4. The industry is able to raise capital from foreign markets at lower cost if it can create confidence in the minds of foreign investors that their financial statements comply with globally accepted accounting standards.

5. It offers accounting professionals more opportunities in any part of the world if same accounting practices prevail throughout the world.

Hope this meets your purpose.

Kindly Like the answer if it was helpful. This motivates the experts.

Thanks.