- By adopting IFRS, you would be adopting a "global financial reporting" basis that will enable your company to be understood in a global marketplace. This helps in accessing world capital markets and promoting new business. It allows your company to be perceived as an international player.
- A consistent financial reporting basis would allow a multinational company to apply common accounting standards with its subsidiaries worldwide, which would improve internal communications, quality of reporting and group decision-making.
- In increasingly competitive markets, IFRS allows a company to benchmark itself against its peers throughout the world, and allows investors and others to compare the company's performance with competitors globally. read more...
IFRS: Costs and Benefits The SEC in their road map for potential use of International Financial Reporting Standards estimates that the average cost for companies eligible for early adoption of IFRS is approximately $32 million. This means that for 110 companies anticipated being eligible for early adoption, the cost would be $3.5 billion. The road map also outlines benefits that will accrue to companies that adopt IFRS. Benefits include improved comparability to other companies in an industry, a possible increased following in the marketplace and more efficiently priced capital. Unfortunately, in cost/benefit analyses of IFRS adoption, benefits are less tangible than costs and more difficult to quantify. In a research study released earlier this year by the Institute of Chartered Accountants of Scotland covering IFRS implementation experiences in the UK, Italy and Ireland, respondents when asked if benefits outweigh costs were either unsure or answered no. The study points out that implementation costs were tangible and immediate but benefits were intangible and longer-term. read more... | |
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