IFRS Essay example
Undergraduate
Essay
Finance & Accounting
Pages 4 (1004 words)
Download 0
Name Course Instructor Date Thought Activity My country – Indonesia has not adopted IFRS but instead has been following a process of gradual convergence to IFRS. In fact, Hans Hoogervorst (2013) points out that Indonesia’s approach to the adoption process is to maintain its national Accounting Standard – the Indonesian Financial Accounting Standards (IFAS)…

Introduction

The reason for opting for gradual convergence instead of adoption is that the local accounting body may want to become involved in the standard setting process. If IFRS is adopted fully then we will just have to accept what a few people have decided for us. I think we should be involved in decisions that affect us, and other countries have taken a similar approach. In fact, Ramanna and Sletten (2009) indicates that there is evidence to suggests that the more powerful countries like the US are not willing to surrender their authority to set accounting standards to an international body. However, Ramanna and Sletten (2009) found that counties are more likely to adopt IFRS when trade partners or countries within the geographical area in which they operate adopt IFRSs. This is one of the reasons for the importance of the transition to IFRS. Hoogervorst (2013) indicates that 75% of the countries in the G20 group of which Indonesia is apart use IFRS. I found out that the reactions in relation to the adoption of IFRS are mixed. There are ongoing changes to IFRS and so the gap between Indonesian Standards will widen as new changes are set for this year. ...
Download paper
Not exactly what you need?

Related papers

IFRS AND GAP CONVERGENCE
GAAP stands for General accepted accounting principles and are the set of standards developed by US, keeping their needs in mind. On the other hand, IFRS stands for international financial reporting standards are standards developed by UK. In the past financial statements were relevant to these respective countries only but globalization has called for the need of one set of standards. Convergence…
IFRS Illustrated Financial Statement
US GAAP, on the other hand, requires that post-tax loss/income as well as pre-tax loss/income be presented on the face of an entity’s income statement. IAS 1, which falls under IFRS, prohibits all extraordinary items while under US GAAP it is permitted. Depreciation under IFRS requires that components of the asset being depreciated that have varying benefits are to be depreciated separately…
The IFRS for SME's
In the fast-evolving business environment brought about by the recent advances in information and communication technologies, transportation, and others, conducting business have also changed. Requirements and understandings need to be ready, clear, and acceptable for all of those conducting business due to various factors such as internet connectivity that allows transfer of funds from one point…
International Financial Reporting Standards (IFRS)
The policies of IFRS are more advanced and precise for meeting the changes in the new accounting and audit systems, so US is also moving towards IFRS. The US GAAP is actually concept based, whereas IFRS is based on principles. The methodology of these two frameworks and the accounting treatments are also different. In US GAAP, the research is mainly based on the literature but in case of IFRS, the…
IFRS and GAAP Convergence
When the financial statements are available in annual reports, it is the responsibility of the managers to evaluate and discuss results of company performance. External parties use these financial statements to analyze the company’s financial performance. Therefore, external users of financial statements are requires to be familiar with the tools and techniques which are used in financial…
GAAP VS IFRS
The United States corporations will benefits by converting from GAAP to IFRS. One, IFRS allows extra flexibility than United States GAAP, and because stock option and bonus schemes normally offer managers incentives to enhance earnings, this flexibility will probably be utilized to enhance the income of U.S corporations more frequently than it will be employed to lessen earnings. Two, converting…
Convergence between GAAP and IFRS
The US Generally Accepted Accounting Principles is the major accounting standard used in the United States (Walton 45-46). The International Financial Reporting Standard on the other hand is the accounting standard practiced in over 110 countries in the world. U.s. GAAP is mostly considered as a more rule based accounting system, while IFRS is mostly based on principles. It is therefore obvious…