Question

Write a 5 page paper is due over IFRS and the affects it will have on the accounting profession over the next 5 to 10 years.

Please use outside resources and cite your sources in the APA format.

Answer 1

International Financial Reporting Standards (IFRS) is the accounting method that’s used by many countries across the world.

IFRS are issued by the International Accounting Standards Board. They specify exactly how the accountants must maintain and report their accounts. International Financial Reporting Standards (IFRS) are a set of international accounting standards which states how particular types of transactions and other events should be reported in the financial statements.IFRS were basically established in order to have a common accounting language, so that the business and accounts can be understood from company to company and country to country, in a more simplified way.

CFOs are not embracing this change because of the costs involved along with it. There are specifically two areas which are directly impacted: Firstly, a company's financial reporting and its internal control systems. Another cost involved in the transition and change to the IFRS is the public's perception of the integrity of the new converged set of standards. The SEC reporting requirements will also have to be adjusted to reflect the changes of the converged system.

Globalization and international trade have made it pertinent the development and issuance of global financial accounting standards, to harmonize accounting and financial reporting practices around the world.

Impact on Accounting Professionals:

As IFRS grows in acceptance, most CPAs, financial statement preparers and auditors will have to become more knowledgeable about the new rules. They will have to adopt the new methods and practices.

Others, such as actuaries and valuation experts who are engaged by the management to assist them in measuring certain assets and liabilities, are not currently taught IFRS, will also have to undertake comprehensive training.

Thus, due to the shift and convergence of the current standards to the internationally accepted ones will force the accounting professionals to learn the new accounting standards and get familiar with the concepts of IFRS.

It will become easy for accountants to compare the data with other countries or to understand the data. Thus, it will further lead to consistency and steadiness in the accounting practices.