Ifrs a Review of the Literature - 1887 Words

Running head: IFRS IFRS: A Review of the Literature Intermediate Accounting III (10089) Abstract Due to the global integration of business and finance throughout the world, approximately 113 countries have adopted or are working on convergence with IFRS. This paper is a look at the history and an examination of where IFRS stands internationally and with the United States. For several decades the industrialized world has been working toward an international set of accounting standards. Since IFRS has become the de facto international accounting language, it is logical that it will be accepted as that standard in the near future. IFRS: A Review of the Literature Over the past 35 years financial regulators worldwide have†¦show more content†¦Adoption (whether of process or of content) means that IFRS are used instead of domestic financial reporting rules. This might apply in certain countries for all companies or for some companies. It might apply compulsorily by law or de facto. In contrast to adoption, convergence with IFRS is a process, whereby domestic standards and IFRS are gradually brought into line. That is, part of the convergence could be achieved by change to IFRS. Indeed, various different countries might be able to contribute good answers to technical problems. However, extensive multilateral convergence is problematic, because converging with one country could mean diverging from another. (pp. 281-82) The following countries are at some stage of convergence or adoption: Asia China has not required or permitted IFRS; however, they have somewhat converged with IFRS. Although several differences remain between Chinese Accounting Standards and IFRS, there are plans in the future to eliminate the differences. Japan also does not permit or require IFRS, but new rules are expected to be issued that will allow IFRS for the year ending March 31, 2010. In Korea, IFRS is permitted with the exception of financial intuitions and adoption of IFRS is required for all companies listed on their local stock exchanges. India does not require orShow MoreRelatedThe Impact Of Gaap And Ifrs On Accounting Programs923 Words   |  4 PagesTopic: The effects of GAAP and IFRS Convergence on accounting programs The first article reviewed was A progress report: IFRS-U.S. GAAP Convergence and it Curriculum Impact. The key aspect of this abstract is the impact in higher education. The difficulties in training for teaching IFRS and the benefits gained. The introduction describes how more countries have adapted the IFRS guidelines and it estimates that the United States may do so in the next decade. 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