Adopting International Accounting Standards and International Financial Reporting Standards

Justifications for Adopting IFRS/IAS
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Justifications for Adopting IFRS/IAS
The pillar of the contemporary complex financial system is accounting education. Notably, adopting the International Accounting Standards (IASs) and the International Financial Reporting Standards (IFRSs) facilitates proper recordkeeping of financial information. As such, businesses can compare their performances since IAS and IFRS harmonize the accounting data regardless of a company’s location.
The implementation of the IFRS requires a high level of expertise and education to understand and interpret the accounting information. In particular, a well-developed accounting system offers adequate financial disclosure and reporting (Nurunnabi, 2015). In most cases, countries that adopt the IFRS are those with the highest levels of education. The World Bank leads in reforming accounting practices to ensure that many nations implement the IFRS to facilitate a standardized way of financial data record and presentation. Successful IFRS implementation is crucial in reducing corruption since it becomes challenging for firms to manipulate accounting information, which might mislead investors’ decisions.
The adoption of the IAS promotes the effectiveness of accounting information reporting. Specifically, it emphasizes proper accounting policies that allow companies to compare their ...