CONTEMPORARY ISSUES IN ACCOUNTING1CONTEMPORARY ISSUES INACCOUNTING
CONTEMPORARY ISSUES IN ACCOUNTING2ContentsIntroduction:...............................................................................................................................3Convergence:..............................................................................................................................3Issues and challenges:................................................................................................................5Conclusion:................................................................................................................................6References:.................................................................................................................................7
CONTEMPORARY ISSUES IN ACCOUNTING3Introduction:The main aim of these standards is the fact that the adoption of them would lead to anincrease in the capital markets efficiency. It would lead to a higher quality of the comparablewhen benchmarking is done in the market. There would be a greater amount of transparencyand there would also be a cross border comparison for the investors and that too at reducedcost (NCBI, 2017).Another objective of adoption of these standards is the harmonisation of the internationalaccounting standards is the recognition of the worldwide effort to restore in the confidence inthe corporate reporting and also to create in the free flow of the capital across the world. Oneof the reasons as to why these accounting standards have been complied with is the fact thatthere needs to be a creation of one single capital market (CS online, 2017). The companiesare able to make an unreserved statement as to the preparation of the IASB standards and theaudit reports that would be able to be referred to compliance to an entity with the standards ofthe IASB. That would help the company in participation and competing with the market. Thesecond aim of these standards is the fact that these accounting standards would help theinvestors in the cross border comparison by the investors which leads to the reduced cost ofcapital for the companies of the country and also would assist them in raising or listingoverseas. Also, the convergence of the stated standards would take on some time for beingimplemented (Mondaq, 2017).Convergence:The convergence is expected to yield many benefits for the company. There would be a bettercomparability and also a greater transparency. These standards would help in the financialcomparison of the companies and its comparability. The comparison would be done without
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