Convergence Disadv

While IFRS offer the above benefits for the investors, industry and the overall economy, it excessively has certain cost and disadvantages attached to them. Following are some(a) of the disadvantages of IFRS: 1. Markets and politicas remain primarily local, not global. There are provoke political and economic reasons to expect IFRS enforcement to be unsmooth just about the world, including within Europe. Substantial international differences in financial reportage course session and financial reporting quality are inevitable, international standards or no international standards. This conclusion is based on the premise that despite increase globalization most political and economic influences on financial reporting approach pattern remain local. 2. Effect on investors of uneven implementation wizard concern that arises from widespread IFRS adoption is that investors will be misdirect into believing that there is more uniformity in practice than actually is the case and that, even to sophisticated investors, international differences in reporting quality now will be apart(p) down the stairs the rug of seemingly uniform standards. In addition, uneven implementation curtails the ability of uniform standards to reduce information costs and information risk, described above as an advantage to investors of IFRS.

abrasive implementation could increase information processing costs to international investors by burying accounting inconsistencies at a deeper and little transparent level than differences in standards. In my view, IFRS implementation has not received sufficient attention, perhaps because it lies away from public sight, under the rug. 3. IFRS enforcement mechanisms Under its constitution, the IASB is a standard-setter and does not have an enforcement mechanism for its standards: it puke cajole counties and companies to adopt IFRS in name, but it cannot require their enforcement in practice. It cannot penalize individual companies or countries that adopt its standards,... If you want to use up a full essay, order it on our website: Ordercustompaper.com

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