week 1 discusion

This week's case centers around our increasing dependency on international trade. As a result, there is a movement toward one set of international accounting standards that would increase trade globally and add to the transparency of financial reporting.

Please answer and discuss the questions asked in our International Financial Reporting Case IFRS 1-5 located on page 39 of the textbook.

b) What stakeholders might benefit from the use of international accounting standards?  The stakeholders might benefit from a viable capital market.  We believe that the Secretary is right. Relevant and reliable financial information is a necessity for viable capital markets.  So in benefiting from the relevant and reliable information, stakeholders can make a profit.  Stakeholders also benefit from sets of rules for international accounting which are GAAP and the IFRS.    

http://www.businessdictionary.com/definition/International-Accounting

(c) What do you believe are some of the major obstacles to convergence?

c) I believe the major obstacles to convergence are the following:

3 The financial burden of implementation that would be placed on companies already struggling financially to make it in today's struggling economy

1 The tax impact on corporations - especially on reporting fixed assets

2 The amount of time needed to convert from one standard to another