BusinessEducation

What are the potential benefits of a global set of accounting standards?

 Potential benefits of a global set of accounting standards include:

 Using a principles based approach which allows more scope for the use of professional judgement when the principles are applied to specific situations.

 Greater comparability between financial reports of different entities and countries if they are prepared using an internationally recognized and accepted basis of accounting.

 Reduction in the cost of financial statement preparation if restatement of financial statements for other jurisdictions is no longer required

Greater mobility of staff as staff trained in IFRS will be more readily able to move between foreign subsidiaries without the need for retraining in financial statement preparation.

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