How Would International Financial Reporting Standards Affect the Quality of...

How would International Financial Reporting Standards affect the quality of Canadian accounting information? LIMING TONG INTRODUCTION Globalization has a great match on todays economy. The differences of accounting regulations and practices in diverse countries give way become a noteworthy obstacle to globalisation and economic development. International Financial Reporting Standards (IFRS) mitigates global contrast barriers. In order to adapt to the increasingly global occupation environment, public companies in Canada provide move to IFRS by 2011. This social movement will have a significant influence on Canadian business such as capital markets, pecuniary statement preparers, the accounting profession, and even accounting students. Investors are glowing to understand the differences between IFRS and Canadian generally accepted accounting principles. The public companies should be wide awake to follow IFRS in January, 2011. Even private companies should fit their businesses into the refreshful environment. Therefore, most Canadian companies care about what issues IFRS deals with. In our report, we will only focus on how IFRS affects the four qualitative characteristics of Canadian accounting informationâ€"relevance, reliability, comparability and consistency. The discussion will attend investors to better understand accounting information.

Generally, IFRS and Canadian generally accepted accounting principles have the same objective: providing useful information for decision making. twain of them are principles based and have the same conceptual frameworks. However, in that respect are still some significant changes from Canadian GAAP to IFRS: the implementation of fair value, going concern exposure, revenue recognition, disclosure of extraordinary items, costing techniques, and segment reporting. (See Appendix) This change from IFRS to Canadian GAAP will benefit investors because increasing relevance allows them to better quantify the firms future prospects. On the other hand, it whitethorn bring disadvantages to the management since decreasing reliability may make... If you indigence to get a full essay, order it on our website: Ordercustompaper.com

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