IFRS Adoption and Reasons for not adopting IFRS by the FASB in the US

Running Head: IFRS 0
International Financial Reporting
Standards

IFRS 1
Introduction
Klynveld Peat Marwick Goerdeler firm which provides professional services and provides
expert advice in tax, audit and also gives advice to client in this digital world. The accounting
standard of this firm are based on International financial reporting standard. After the
adoption of IFRS, Australia is conveying more clearly financial information to shareholders.
The KPMG has wide knowledge and experience to comply accounting standards in variety of
transactions (Appuhami & Tashakor, 2017). The given statement states that the global
adoption of IFRS increases the reliability and comparability of financial statement. The
modification of IFRS should be in the way that it not affects the financial statement
comparability (Felski, 2017). The International accounting standard board is the private
sector body and they approve International Financial Reporting System. The matters related
to International financial reporting standard are controlled by International Accounting
Standard Board (Kieso et al., 2019).
IFRS adoption
Since 2005, the quality of corporate reporting after adoption of IFRS is improved. The
Australia and European Union adopted IFRS in the year 2005. Many countries adopted IFRS
in last years because the financial disclosures are being improved. The financial disclosures
are relevant because they help the organisation to make economic decisions (George &
Shivakumar, 2016).
The IFRS adoption will help investors to generate financial decisions effectively and will
lead to remove the confusions related to financial performance. The risk of investor will also
be reduced. There is no need to follow the numerous types of standards. Following only the
accounting standards will help to reduce the cost invested to prepare financial facts. This
adoption will also help to allocate the financial resources internationally and may produce
more incentives to invest in other countries. The companies which further also desires to
produce quality financial disclosures should strictly follow IFRS. The main objective of
corporate reporting is to convey the information of financial position and to maintain the
changes if any in financial performance (Khlif & Achek, 2016).