Accounting Essay Example | Topics and Well Written Essays - 2500 words - 5

Accounting - Essay Example 285). The UK being an active member of the European Union has not been left behind in the adoption process. The International Financial Reporting Standards (IFRS) has been adopted as a basis for financial reporting by a significant number of countries worldwide. The main of the UK companies adopting the IFRS is to improve the quality of the information on the corporate performance. However, while the advantages of a common set of global reporting standards are recognized, there are a number of implementation challenges at the international and national levels if the objective of an improved and harmonized reporting system is to be achieved (Tosen, 2006, pg. 99). Today, International Financial Reporting Standards has been the main subject of discussion especially among numerous financial experts. The debate has been on how changes in the way the companies can file their financial statements and records can the enforced. Adoption of IFRS has enabled companies to swap from GAAP which depends largely on the size of the company. Transition from GAAP to IFRS has therefore helped companies to efficiently adapt the new regulations (Sale et al, 2007, pg. 114). This in turn has provided a number of benefits to the countries that its member companies have adopted the IFRS. The benefits of the adoption of the International Financial Reporting Standards can be examined not only from the reporting quality position but also from the economic perspective. These benefits include: The transition to IFRs has provided the companies with many perks. The most beneficial part of adopting IFRS has been consistency. Most companies in the world especially in the UK use this policy because it has high level of consistency and Canada too is in the process of setting up plans so that they can adopt it as well because of this benefit. It is therefore advisable that many countries should enforce this policy because it gives the member