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Corporate Reporting Analysis

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Added on  2021-05-27

Corporate Reporting Analysis

   Added on 2021-05-27

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Corporate Reporting
Corporate Reporting Analysis_1
Answer 1IntroductionThe present report is developed in order to provide an understanding of adopting auniform set of accounting standards of IFRS to improve the quality of financial reporting.International accounting Standard Board (IASB) is emphasizing on the adoption of IFRS acrossall the countries at a global level to promote accounting standardization. IFRS compliance by allthe companies globally will lead to convergence of financial reporting and also makes reducesthe cost involved in development of financial reports (Ramanna and Sletten, 2009). In thiscontext, this report is developed for analyzing the adoption of IFRS fro development of globalaccounting standards to reduce the information costs to an economy and improving the tradeglobalization.IFRS Adoption as Global Accounting StandardsDifferent accounting setting bodies and policy makers places special emphasis on impactof financial reporting on economic development. This is because the financial informationdisclosed by the business entities has a large impact on the investor’s trust and confident. Theincreased reliability and transparency in the financial reporting process will promote the investorconfidence level to invest in the business entities and thus promoting the economic growth anddevelopment. As such, IASB is emphasizing on adoption of IFRS standards to be used bybusiness organizations at a global level to promote standardization of accounting methods andprocedures used in developing the financial reports. This will increase the comparability of thefinancial information across the world and thereby making easy for the investors to takeinvestment decisions by comparing the financial condition. This cause increased capital flowsacross the different markets and reduces the information costs to an economy. The marketsefficiency improves with greater capital allocation and impacting the securities price andimproves the sources of entities to gain additional financing (Turki, 2016). The globalization of accounting standards promotes the openness of securities marketsand as such improves trade flows across the countries. The high quality disclosure caused by theadoption of IFRS standards reduces investors concerns regarding the quality of information. Thispromotes the interest of stakeholders regarding investment in global economies and improves the
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