Impact of IFRS on Global Financial Reporting and Compliance

This report provides a detailed analysis of International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS). It begins by comparing IFRS and IAS, highlighting their key differences and objectives. The report then evaluates the benefits of adopting IFRS, emphasizing its role in accessing global capital markets and facilitating international business operations. Furthermore, it examines the varying degrees of IFRS compliance across different organizations and nations, identifying factors such as political, legal, and cultural influences that impact compliance levels. The report supports its findings with relevant examples and concludes by summarizing the overall impact of IFRS on the global financial landscape, including the implications for investors and businesses operating internationally. The report references academic sources to support its arguments.

FINANCIAL

Table of Contents
MAIN BODY...................................................................................................................................3
Difference between International Accounting Standards (IAS) and International Financial
Reporting Standards (IFRS).........................................................................................................3
Evaluate the benefits of IFRS......................................................................................................3
Identify the varying degrees of compliance with IFRS by organisations across the world and
the factors in a nation which may impact compliance. Support the statement with appropriate
examples......................................................................................................................................3
REFERENCES................................................................................................................................4

MAIN BODY
Difference between International Accounting Standards (IAS) and International Financial
Reporting Standards (IFRS).
IAS IFRS
The international accounting standard has the
main objective that the financial centre of the
world which are interconnected to each other
make use of the financial framework which
has been published globally (Christensen and
et.al., 2015). These framework ensures that
there has been efficient controlling in the
financial market.
International financial reporting standards has
the main objective that the financial data
which has been collected can be useful for the
potential lenders, investors and other creditors.
Economic benefit can be provided to company
who are using these standards.
Evaluate the benefits of IFRS.
International financial reporting standards can help company in exploring the capital markets of
world. It can assist company in promoting their business. These standards can help organization
in settling down at global market place (Capkun, Collins and Jeanjean, 2016). These standards
can also help investors to measure company’s performance with other organizations which are
working internationally.
Identify the varying degrees of compliance with IFRS by organisations across the world and the
factors in a nation which may impact compliance. Support the statement with appropriate
examples.
There are various factors which can affect compliance of IFRS. These factors can include
political, legal, trade alliances, inflation and many more. Culture can also affect IFRS. Like for
example society with high rate of uncertainty avoidance tend to prefer this system as this system
is more secretive and confidential (Cascino and Gassen, 2015).

REFERENCES
Books and Journals
Capkun, V., Collins, D. and Jeanjean, T., 2016. The effect of IAS/IFRS adoption on earnings
management (smoothing): A closer look at competing explanations. Journal of
Accounting and Public Policy.35(4).pp.352-394.
Cascino, S. and Gassen, J., 2015. What drives the comparability effect of mandatory IFRS
adoption?. Review of Accounting Studies.20(1). pp.242-282.
Christensen, H.B. and et.al., 2015. Incentives or standards: What determines accounting quality
changes around IFRS adoption?. European Accounting Review.24(1).pp.31-61.

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