International Financial Reporting Standards Assignment - 1

International Financial Reporting Standards - Assignment Example More than 100 countries have formally accepted IFRS as the standards for preparing financial statements and to become compatible with each other. IFRS are issued by the International Accounting Standards Board (IASB), a private sector international body. In fact, IASB itself is a new body, which emerged on the international scene in the year 2001, by replacing the International Accounting Standard Committee (IASC). With the increasing acceptance of these standards around the world, it appears all the more necessary for multinational enterprises (MNE) and countries with a global presence, that they should adopt the IFRS in order to make their functioning more acceptable in these areas. This will not only help the MNEs to save on their resources, but it will also help them in making use of similar modular and portable systems for accounting. There are many countries where the IFRS are not yet in use, but even in such countries, IFRS inspired standards are now being used. This helps in making the fullest use of the globalization and liberalization practices. Therefore it is in the interest of US companies that they should adopt the IFRS in all sincerity and make the best use of the available opportunities. In fact, adopting uniform standards will also help in tracking financial irregularities and thinking of appropriate solutions. Key benefits of going for IFRS include; i. Streamlining of reporting of the financial health of the company ii. Cost reduction - as companies will be able to make standard packages iii. Consistency in operations and financial details iv. Comparison with international competitors becomes easier. v. Better opportunities for accessing capital markets