Why should IFRS be Amended?
The accounting standards cannot be same as the world of business keep on changing. There has been a debate regarding the use of the international financial reporting standards with the GAAP (generally accepted accounting principles). Most of the countries that are using international financial reporting standards are not considering the fact that they have to use reporting standards regarding GAAP.
However there is a clear difference between the international financial reporting standards and the generally accepted accounting principles .There are some standard rules set in GAAP whereas international financial reporting standards is more of a principle based. Public sector companies are using generally accepted accounting principles as it is quite appropriate for public trading. There have been demands raised by many other countries that there should be some changes required in the generally accepted accounting principles as now there are a number of companies that are having business globally.
Japan business council is of the view that it should not be made compulsory that international financial reporting standards should be used however it would be quite easier for the companies if they start using it voluntarily. There have been immense pressure on the Securities and Exchange Commission that there must be some modification done in international financial reporting standards. Yet there are some questions to be answered about the eligibility of the use of international financial reporting standards .Japan business council has been trying to have a meeting, the agenda of the meeting would be use of international financial reporting standards in Japan .Financial service agency (FSA) in response to the point raised by BAC purposed that there can be some relaxation could be given as far as the regulation of international financial reporting standards are concerned.
The major focus was on the endorsement process in which FSA and BAC had a mutual understanding. The major focus on the endorsement process will result in partial modification of the current process that has been followed in international financial reporting standards. But it should also be used on a voluntary basis .This process will go through different phases in which FSA has to play a major role.
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