Benefits of International Accounting Standard Board

BENEFITS OF INTERNATIONAL ACCOUNTING STANDARD BOARD
The board or IASB provide different accounting standards so that the
accounting of different entity is done within the parameter of that accounting
standard and is accepted globally all over. Many countries have started
following international accounting standard but not in united states as of
October 2013.The Security and Exchange commission require the listed
company of US to use the GAAP principles .But the privately held companies
are not required to comply with those principles as they do not come under
the regulation of security and exchange commission .Privately owned
companies comply with the standard according to their requirement. Few
points have been highlighted below which shows the benefit of international
accounting standard:
A. Improvisation in the flow of capital: IFRS make it easier for the
company in reporting purpose. Through IFRS the accounting practice,
also become convergent and transparent. This also helps in boost of
capital across globe. It becomes very much easy for the other people
around to invest their capital in international business. Comparison of
financial statement of one business can be easily done with other
international business and it becomes very helpful and easier for the
companies to attract foreign investment, and for the investors to
decide where to park their surplus fund based on the financials of the
company.
B. Globalized Orientation: As the company is using IFRS as the
accounting standard in their books of accounts, which is accepted
globally all over the world and does not limit to a national level of
accounting. The financial statement of the company becomes easily
acceptable in those companies who comply IFRS for their reporting
purpose. The company is also not required to prepare different set of
books while bringing foreign investment in their own country; this
reduces the extra cost involved in preparing that financial statement
according to IFRS.
C. Generalized standard-setting: The requirement specified in IFRS
are very flexible and can accommodate to both expected and
unexpected changes in the international business market as they are
based on broader framework and principles. The IFRS stipulations are

designed in such a way that it can accommodate itself in every
perspective and jurisdiction and very less interference of International
Accounting Standard Board. They can prepare the Financials of the
company according to its own discretion as there is no specified format
to it prescribed by IASB and it gives business the option of preparing
the financial statement of the company according to the end users
need of the report.
D. Improvement in the quality of Financial Reporting: Compliance
of International financial reporting standard by the company and uses
the same for the reporting purpose improves the quality of the
company financial report and it eaves very less space for the company
to curb the objective set the standard. Quality financial report also
enables the user to easily interpret and increase their confidence
towards the company, which help them to make decision wiser and
easier.
INTERNATIONAL FINANCIAL REPORTING STANDARD
The business world today is globalised and coming closer to each other
therefore to make the financial reporting compatible, many countries are
going forward to adopt International Financial Reporting standard. As IFRS
have got the common rules of accounting that need to be reported and how
the information and what set of transaction should be reported in the
financial statement of the company. The same set of accounting in different
company also widens many business opportunities for different country.
(Mohr, 2018)
Few are the advantages of International Financial Reporting Standards,
which are reported below:
A. Ease in Comparison: Companies which use the same set of standard
while preparing their financial statement can be easily compared and
can be accurately analysed.It is very important also for the investors to
do comparison of two companies with different financial statement and
same set of accounting rules.IFRS makes it easier for the companies
who are situated in two different countries and helps the investor to do
there comparison easily of two business while making the investment
decision in any company. (Mohr, 2018)

B. Greater Flexibility and adaptability: The use of International
Financial Reporting standard is generally principle based rather than
rule based.It becomes very easy to find the ways and arrive at a
particular valuation since it is principle based rather than rule based.It
is also very helpful for the companies to easily adapt IFRS in any
situation which can be easily interpreted and read. (Mohr, 2018)
C. Beneficial for new and small investors:IFRS help new and small
investors as it makes reporting quality very easy and simpler so it
becomes very easy for the investors and the professional people to
easily interpret it with ease which was not very easy under previous
standard. It also put the professional investors and the new investors
at par as the IFRS reporting and presentation is easily understood by
all the people around. This helps in reducing the risk for the small and
new investors when they do trading, as the professional investors will
not be in a position to take advantage of small and new investors as it
can be easily understood and interpreted. ( Connectusfund.org , 2018)
D. More Cross Border transactions and investment: The set of
accounting followed by the two different countries is same which
enable the investor, investee, buyer, and seller to create trust between
them. The outside investor can easily rely on the financial statement
and can show greater confidence and can investment in the business
projects easily.IFRS is also very helpful for the companies to gain the
confidence of foreign shareholders.It is also very helpful when mergers
and acquisitions need to be done in case of two companies.Easily
accessible to international market .If the company is following IFRS
than the institutional investors can also increase their holding. (Shete,
2014)
DIFFERENCES AND IMPORTANCE OF FINANCIAL REPORTING ACROSS
DIFFERENT COUNTRIES
The reporting entity identifies a number of nations that each gives the
explanation regarding the differences in financial reporting across the globe
and in many countries. We first analyze 72 different countries across globe
and found that they are highly correlated and many factors, which explain
the variation across countries .There, are many different countries each