Question

Various context-specific factors may inhibit a country from adopting International Financial Reporting Standards (IFRS) globally. Do you agree or disagree? Justify your response by identifying and discussing three factors. Give one example of each factor discussed.                                                                                                 

                                     

Answer 1

YES ,i agree . various context specific factors may inhibit a country from adopting International Financial Reporting Standards(IFRS) globally.

IFRS Standards address this challenge by providing a high quality, internationally recognised set of accounting standards that bring transparency, accountability and efficiency to financial markets around the world.

IFRS Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.

IFRS Standards strengthen accountability by reducing the information gap between the providers of capital and the people to whom they have entrusted their money. Our Standards provide information that is needed to hold management to account. As a source of globally comparable information, IFRS Standards are also of vital importance to regulators around the world.

And IFRS Standards contribute to economic efficiency by helping investors to identify opportunities and risks across the world, thus improving capital allocation. For businesses, the use of a single, trusted accounting language lowers the cost of capital and reduces international reporting costs.