Question

Discuss factors that can adversely affect the independence of the IASB. Would worldwide adoption of IFRS result in absolute worldwide comparability of financial statements? Why or why not?

Main question to answer: What should accountants and investors do to cope with the comparability issue?

Answer 1

Answer:

1). Answer:

The accompanying variables unfavorably influence the freedom of International Accounting Standards Board (IASB):-

a). Political condition antagonistically influence the IASB. The nations with solid political power may impact and influence the basic leadership process in the gathering of IASB and consequently, powers other part countries of IASB to consent to the rules/choices concluded by those nations.

b). Sometimes there is issue is the coordination among the part countries of IASB to actualize the IFRS which additionally antagonistically influences freedom of IASB in light of the fact that absence of coordination and participation among the part countries won't help them in coming to on any accord which affect on the improvement and execution of IFRS.

c). Government approaches, Structure of government, Rules and controls of government likewise unfavorably affect the freedom of IASB.

2). Answer:

Yes, reception of IFRS result in total equivalence of budget reports around the world. This is on the grounds that because of overall appropriation of IFRS, Accounting practices and strategy will be same everywhere throughout the world.

Further, there will be no issue in union of the fiscal report of one association with other association regardless of whether other association situated in nation other than the cause of first nation.

IFRS will ease and disentangles the bookkeeping procedure over the world and in this manner, there will be consistency in the bookkeeping treatment of altruism, stock valuation, deterioration, and so forth.