IFRS lays down principles and rules that are to be followed by an organization while reporting its financial information through the financial statements. The accounting standards in accordance with IFRS are supposed to serve the public organisations all around the world as compared to the existing local standards that are prevalent in a particular country where the company operates its business. This is due to the fact that it would assist in the financial reports being more transparent and comparable in nature. It is also supposed to provide economic stability of the countries. Many companies in different countries all around the world have already adopted IFRS in the recent years. However the transition from the existing local standards to IFRS is associated with considerable costs for the organisations that tend to implement it for the first time. Companies need to be cautious and careful while making such changes in their financial reporting procedures because of the incurrence of various training and technical associated with it. However compared to the costs, the benefits are plenty in implementing IFRS and hence it is worthwhile for companies to make such changes.
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