Question

the current status of IFRS worldwide and in the United States. discuss challenges as well as opportunities of IFRS adoption in the United States, from the perspectives of the accounting profession

Answer 1

International Financial Reporting Standards are set by the International Accounting Standards Board (IASB). The mission of IASB is to develop, in the public interest, a single set of high quality, understandable and International Financial Reporting Standards (IFRS) for general purpose financial statements. IASB is an independent standard-setting board, appointed and overseen by a geographically and professionally diverse group of Trustees of the IASC Foundation who are accountable to the public interest.

• Issuing accounting standards interpretations on matters related to accounting standards: With a view to resolve various intricate interpretational issues arising in the implementation of new accounting standards that have already been issued, the ICAI has issued thirty accounting standards interpretations.
• Issuance of background materials on accounting standards: To facilitate discussion at seminars, workshops, etc., ICAI has issued background material on newly issued accounting standards. The background material deals, inter alia, with the key requirements of the accounting standards with examples and Frequently Asked Questions (FAQs), which accountants and auditors may encounter in the application of accounting standards.
• Issuance of Guidance Notes on accounting matters: ICAI has issued various Guidance Notes in order to provide immediate guidance on accounting issues arising due to issuance of new accounting standards and to provide immediate guidance on new accounting issues arising due to changes in legal or economic environment and/or other developments.
• The implementation of a new system of global accounting standards would require a complete revision of the domestic accounting processes and strategies. Although the CFO of each organization would be responsible for this task under most circumstances, the implementation of the new rules would come from the accounting team.
• These departments are already busy trying to manage the rules and regulations that are in place currently, so they would be asked to continue with their daily work while creating the foundation for this system to receive implementation too.
• When you add in the additional training that many accountants would require to stay in compliance with the new rules, determining how continuing education programs would work is an issue that has little clarity at the moment.
• International Financial Reporting Standards, then there is an increased risk of suffering from a costly delay or mistake during the transition period. Since every country maintains their own complex systems of regulations that govern financial reporting without direct involvement with the standards in use, there might still be a requirement to offer multiple reports as well.

That means the only difference we see when adopting IFRS globally is a shift in the presentation of what the agencies provide.here are numerous business that would feel the financial impacts of adopting IFRS immediately, even though the SEC estimates that about 100 firms are already using this as their primary standard since a majority of their revenue comes from overseas. We must also adjust the curriculum offered at many business schools because the International Financial Reporting Standards are not taught regularly in the United States