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International Financial Accounting Standards (IFRS)

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International Financial Accounting Standards (IFRS) are the Standards, Interpretations and Framework for the Preparation and Presentation of Financial statements adopted by the International Accounting Standards Board (IASB). It was formerly known as International Accounting Standards (IAS). The board of the International AccountingStandards Committee (IASC) issued the International Accounting Standards ( IAS) between 1973 and 2001. On April 1, 2001 the new IASB took over the responsibility of setting International Accounting Standards from IASC. It has since then continued to develop standards called as the new standards IFRS. This set of international accounting and reporting standards will help to improve the transparency of accounting, …show more content…

Bringing awareness about IFRS and its impact among the people who prepares financial statements is a challenging task.
2. Issue of GAAP Reconciliation
The Securities Exchange Commission (SEC) laid out with two options in its proposal-firstly calling for the traditional IFRS first time adoption process, secondly requiring that step plus an on-going unaudited reconciliation of the financial statements from IFRS to US GAAP. Clearly the second one is a more costly approach for firms and its users.
3. Training and Development
Lack of training and education courses about the implementation IFRS and its use have raised challenge in India. So, it is essential need to provide training and education on the operations of IFRS.
4. Legal and Regulatory
Presently, the financial reporting requirements are authorized by various regulatory authorities in India and their provisions override other laws and regulators. IFRS does not recognize such overriding laws. So, such laws and regulatory in India will create challenges to IFRS and its application.
5. …show more content…

The tedious task of data collection is automated since data can now be assembled and managed quickly and efficiently.

3. Maintains a uniform standard
XBRL can handle data in different languages and accounting standards. A uniform standard ensures that any organization from any country uses the same scale and hence, is on the same page regarding the semantics of this financial reporting language.

4. Flexibility
It can flexibly be adapted to meet different requirements and uses. Data can be transformed into XBRL by suitable mapping tools or it can be generated in XBRL by appropriate software.Financial as well as non-financial reports such as tax filings, management reports, publication reports etc. can be generated with ease and streamlined within the organization.

5. Transparency The internal transparency of enterprise data is greatly enhanced within an organization since information is made re-usable.The analysis and distribution of important data gains efficiency and effectiveness to a large extent. The financial documents are more credible owing to their high accuracy and error free account.

6. Productive decision

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