The IASB at a Crossroads Assignment Example | Topics and Well Written Essays - 250 words

The IASB at a Crossroads - Assignment ExampleIFRS ensures high quality standards in financial reporting of financial statements globally by promoting transparency, accountability and integrity in financial reporting. High quality financial reports enable the making of effective decisionsIFRS decreases the cost of capital and provides institutional investors with the ability to make well-informed decisions by comparing investment portfolio. Companies trading in the stock market are required to comply with IFRS. IFRS helps to reduce information dissymmetry and reduces transaction costs thus reducing the cost of capital. This helps attract Foreign Direct Investments. IFRS also promotes bring out management control systems.Despite the benefits adoption of IFRS faces quite a number of challenges. There is lack of populace awareness on the hold of IFRS and its benefits to regulatory authorities and investors. This is because of lack of information on IFRS. There is degenerative short age of competent professionals in some countries especially developing countries to implement IFRS. Most of these countries still use previous accounting practices which IFRS is phasing out. The IASB is ambiguous in its requirement on the adoption of IFRS globally. For instance, the less developed countries would exclusively adopt the standards without putting in appropriate legislative measures. A few industry players would adopt IFRS and insofar the country would be registered as an adopter of IFRS.The IASB can promote updating of academic curricula in universities and homework institutions across the world in order to bring forth public awareness on the use of IFRS and raise competent professionals who can implement IFRS. IASB can continuously publish pronouncements and embark on capacity build programs on IFRS to provide more information to investors and regulatory