International Financial Reporting

Paper Summary:

This research paper focuses on the International Accounting Standard Board's (IASB) international financial reporting standards (IFRS) and the barriers and challenges that exist to adoption and implementation of these standards. The work conducts an extensive review of relevant academic and professional literature to identify these challenges and barriers and identifies the steps that are necessary to overcome these challenges.

Outline:
Objective of the Research
Questions of the Research
Methodology
Introduction
Literature Review
Summary and Conclusion

From the Paper:

"In a recent report Allen Blewitt, Chief Executive of the Association of Chartered Certified Accountants (ACCA) warned that "implementation of, and compliance with, International Financial Reporting Standards would be adversely impacted unless the standards were made less complex." Blewitt specifically stated while speaking at a conference in London that: "What I believe the IASB most urgently needs to address are the barriers to implementation. From talking to our members working in business around the world, it is clear that the length of the standards and complexity of the concepts represent a very real problem in many countries. The standards have been described to me as a major turn-off and disincentive for accountants in commerce and industry. People who initially qualified as accountants and are now principals and managing directors resent that they can no longer understand the accounts of the business that they helped to build. I am concerned that, despite the name of the project, the focus of IASB's considerations are going to be large unlisted entities. The overwhelming need for a new set of standards is not for these few companies but for the much larger numbers of genuine SMEs. If the IASB fails to satisfy this real and urgent demand that exists around the world, then some other body must step in and deal with the real problem."

Sample of Sources Used:

• ACCA Chief Executive Calls for Revamp of IFRS Standards (2007) Association of Chartered Certified Accountants. 2007. Online available at: http://www.accaglobal.com/archive/news/general/2422215
• Diaconu, Paul and Coman, Nicoleta (2007) Accounting Research from the Globalization Perspective. International Journal of Social Sciences Vol. 1 No. 2 2007. Online available at: http://www.waset.org/ijss/v1/v1-1-5.pdf
• FASB and IASB Agree to Work Together toward Convergence of Global Accounting Standards (2002) Business Wire 29 October 2002. Online available at: http://findarticles.com/p/articles/mi_m0EIN/is_2002_Oct_29/ai_93509154
• Hegarty, John; Gielen, Frederic; and Barros, Ana Christina Hirata (2004) Implementation of International Accounting and Auditing Standards: Lessons Learned from the World Bank's Accounting and Auditing ROSC Program. September 2004. Online available at: http://www.worldbank.org/ifa/LessonsLearned_ROSC_AA.pdf.
• Irvine, H.J.; and Lucas, N. (2006) The Rationale and Impact of the Adoption of International Financial Reporting Standards: The Case of the United Arab Emirates. Faculty of Commerce - University of Wollongong 2006. Online available at: http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1230&context=commpapers

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