IFRA

IFRA, Advantage

Anil Guest	#1 03/10/2011 06:51 Hi Please tell me what are the advantages of using IFRS? thanks

Muhammad Zargham Haider

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Posts: 32 Joined: 27/09/2011

03/10/2011 07:24

By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. Furthermore, companies with subsidiaries in countries that require or permit IFRS may be able to use one accounting language company-wide. Companies also may need to convert to IFRS if they are a subsidiary of a foreign company that must use IFRS, or if they have a foreign investor that must use IFRS. Companies may also benefit by using IFRS if they wish to raise capital abroad

Muhammad Zargham Haider User Posts: 32 Joined: 27/09/2011	#3 03/10/2011 07:26 there are some disadvantages for USA companies, 1 is below; Despite a belief by some of the inevitability of the global acceptance of IFRS, others believe that U.S. GAAP is the gold standard, and that a certain level of quality will be lost with full acceptance of IFRS. Further, certain U.S. issuers without significant customers or operations outside the United States may resist IFRS because they may not have a market incentive to prepare IFRS financial statements. They may believe that the significant costs associated with adopting IFRS outweigh the benefits.

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