Perceived Costs and Benefits of Adopting International Accounting Standards in Asian Countries

ACCT1077 Financial Accounting Theory
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Executive Summary
This report has presented the perceive cist and benefits that are associated with the
adoption of IFRS within the Asian countries. In this context, it has identified the benefits of
improving quality, consistency comparability and promoting international competitiveness of
these countries. However, the perceived cost related to changes in tax implications, economic
and political restrictions, education and training cost and cultural differences that could restrict
the adoption of IFRS within the financial reporting practices of these countries.
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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Background of Accounting Standards in ASEAN Countries..........................................................4
Perceived Benefits for adopting the International Accounting Standard in Asian Countries.........4
Increases in comparability...........................................................................................................5
Easier to list on foreign stock exchange and need for producing only one set of financial
statements.....................................................................................................................................5
Huge cost saving in the accounting standard setting process......................................................6
Critical discussion on the perceived cost of adopting the International Standards in Asian
Countries..........................................................................................................................................6
Difference in Taxation Systems...................................................................................................6
Economic and political Cost........................................................................................................6
Education and Training Costs......................................................................................................7
Cultural Differences.....................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9
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