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Abstract to my project - Essay Example

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Recent efforts have seen the move towards the convergence of international accounting standards. This is fundamentally the move to having all kinds off financial reporting produce a common result. This concept has been adopted by the SEC and the FASB to ensure the synchronization of all partners who have subscribed to these standards. The IFRS offers this opportunity by having a standard and uniform template upon which all financial reporting will be scrutinized. There is need to conduct further research on the issue of taking up a uniform standards of financial reporting globally. This is because there are some underlying effects that these standards may have on SME (small and medium size enterprises). The standards are developed to favour multinational cooperation, negatively impacting the small and medium size enterprises.
Financial accounting practices are essential for determining the performance of organisations and their financial situations. Private, governmental and non-governmental organisations use accounting standards to improve their performance (Godfrey & Chalmers, 2007). There are many stakeholders of financial information who have an interest in the financial report for various purposes. Therefore, the method used and the influence of that method to the organisation and its financial statement is of great significance to the stakeholders of those organisations (Godfrey & Chalmers, 2007) The document focuses on the advantages and disadvantages of globalisation of accounting standards to various stakeholders. The project contains an abstract, introduction, the body of the report, glossary, conclusion, list of references and bibliography.
International Financial Reporting Standards (IFRS) is the main accounting systems under consideration for application as an international accounting system (Samak et al., 2012). The expansion of businesses ...Show more
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These standards are essential in providing existing and/or potential investors adequate information to make informed and calculated decisions as pertains profitability of…
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