Question

There are a number of advantages and disadvantage to adopting a single set of standards internationally. List three advantages and three disadvantages that were reported within the last six months.

Answer 1

IFRS ;

The advantages and disadvantages of IFRS work to eliminate the reconciliation of the books that must happen under the current system so that there is a unified picture available before making future decisions.

Advantages are as follows;

1. IFRS  would offer more flexibility in the accounting practices,

2. IFRS would help to streamline the system by creating one centralised authoritative body,

3. IFRS would create a single set of accounting practices around the world and

4. IFRS  would make it easier to monitor and control subsidaries from foreign countries.

Disadvantages are as follows;

1. IFRS would increase in cost for small enterprises,

2. IFRS would require changes at education level as well,

3. IFRS will increase more work pressure on accountants,

4. IFRS woudl lead to concerns with standards manipulation.

Thank you.