On The Universal Alignment with the International Financial Reporting Standards (IFRS): A Critical Perspective

• In Event: International Accounting 2

Abstract

Globalization is intended to eliminate country uniqueness so that different parts of the world become alike. Countries are aligning their national financial reporting standards with the International Financial Reporting Standards (IFRS) to narrow differences among countries, hence creating a demand for IFRS. Preparing financial reporting based on a single set of financial reporting standards is supposed to enhance comparability, but it does not. The comparability advantage is confronted by accountants' judgments that the International Accounting Standard Board's (IASB) principles-based standards allow. Furthermore, critics of IFRS are concerned that a nation which adopts IFRS may lose control over its financial reporting and disclosures to foreign regulators. Nations that do not contribute to the creation of IFRS may end up being recipients of other nations' inputs such as language, culture values, regulatory system…etc.

Author

• Khalid Rasheed Al-Adeem, King Saud University