Question

There are challenges to achieve convergence. Scholars have made comments over international convergence of financial reporting.   What are their typical concerns over international accounting convergence, do you agree or disagree with their observations, and why? (in less than 200 words)

Answer 1

This necessitates convergence of accounting standards. The task of convergence of National Accounting Standards with IFRS is not an easy task, involves laborious task of understanding different national accounting conventions, rules and regulations, practices, Laws and necessarily demands a process of harmonization of different practices and thereby to achieve a single set of practices or unification of accounting practices which may bring comparability, reliability, and integrity for the financial statements. The objective of convergence of accounting standards is to have entities in different capital markets use the same conventions to measure and report their financial position and financial performance. This is a notable and worthwhile objective because differences in conventions impact the data available for making investment decisions affecting the decisions themselves.

ISSUES OF CONVERGENCE AND ITS IMPLICATIONSThere are issues closely related to the convergence of national accounting with IFRS. These issues have emerged during the course of the implementation of IFRS. They are as follows.

1.Fair value assessment

2. Cultural differences
3.Political pressures
4.External pressures from IMF and IBRD

5.Dual reporting in transition period

in details please follow the link to get more information

http://vfgc.in/seminar2016proceeding/papers/6_1_APPU_PATIL.pdf