How will the adoption of ifrs change financial reporting, accounting, Basic Statistics

Assignment Help:

How will the adoption of IFRS change financial reporting by companies?

Manager 1: The new rules will definitely change the way our organization prepares financial statements. I think the new rules will also make financial reporting more costly and complex. There will be much more transparency in the financial reports after the implementation of IFRS. However, I think in the long run this would benefit the organization as this would result in fair practice.

Manager 2:  A lot is going to change in the way financial statements are prepared including the look of the financial statements, the names of the financial statements etc. GAAP and IFRS have completely different approached towards accounting standards. There is thus going to be a lot of change in the way financial reporting will be done.

Analysis:  IFRS and GAAP have a significant number of differences. The differences between the two would lead to significant changes in the financial reporting of companies. Some of the changes like IFRS does not allow the use of Last in First out (LIFO) method for inventory costing, would change the way inventory costing is done. While defining the rules for revenue recognition, IFRS is less detailed than the GAAP.  IFRS does not allow cure of debt violations after the end of the year. Some of the financial instruments which fell under the category of equity in GAAP, now fall in the category of debt as per the IFRS. In expense recognition, the amount of expense as well the time period that can be recognized by organizations is differently defined in IFRS and GAAP. All these and a lot more differences will change the financial reporting of companies.  (Christopher Nobes, 2004) 

Expertsmind.com offers unique solutions in accounting.


Related Discussions:- How will the adoption of ifrs change financial reporting, accounting

Luxor case, Susan’s proposed budget for 2011 includes a substantial repayme...

Susan’s proposed budget for 2011 includes a substantial repayment of the bank loan. If the repayment occurs, is the firm likely to break even in 2012? Explain.

Time series, discuss the nature and causes of the components of an economic...

discuss the nature and causes of the components of an economic time series?

Define Accrued liabilities , Obligations showing the responsibility to pay ...

Obligations showing the responsibility to pay for solutions or products that have been suffered or obtained but not compensated for by the end of the sales interval.

Observe value of the appropriate test statistic, As part of a study of corp...

As part of a study of corporate employees, the Director of Human Resources for PNC wants to compare the distance travelled to work by employees at their office in downtown Edmonton

Use this information to construct the 90% and 95% confidence, From random s...

From random sample of 48 days in a recent year, U.S. gasoline prices had a mean of $3.63. Assume the population standard deviation is $0.21?

Barter system, Define the barter system with examples where payment is made...

Define the barter system with examples where payment is made in kind instead of cash. A barter system whereby the payment for purchases is made in kind instead of, in cash. i.e.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd