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Unformatted text preview: hat part of the standards. U nified?
Global? Only to the extent that any country can opt out of anyt hi ng they don’t like.
On to some of the arguments in favor of, and opposed to, adoption of IFRS . Read the article for the full
comments from which I will editorialize.
IFRS are supposed to improve transparency of financial reporting around the world in order to lower
capital costs. The professor points out these benefits are overstated for U S companies because
it is unlikely that financial reporting practices by U .S . firms will improve significantly as a result of1/4 http://attestationupdate.com/2011/06/28/ar g uments- for - adopting - ifr s- ar e- weak- ar g uments- ag ainst- have- validity- ther efor e- we- obviously- should- adopt- ifr s/ 1/23/2014 Ar g uments for adopting IFRS ar e weak, ar g uments ag ainst have validity. Ther efor e we obviously should adopt IFRS. | Attestation Update - A&A for CPAs it is unlikely that financial reporting practices by U .S . firms will improve significantly as a result of
S ounds quite reasonable to me!
Benefits of cross-border comparabilities are exaggerated, according to the professor, because IFRS will
do absolutely nothing about other factors that will affect reporting such as
countries’ legal institutions, their capital markets, firms’ business and governance practices, and
managers’ personal motives
Those factors will continue to create divergence in reporting, regardless...
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- Spring '14