What are the Disadvantages of IFRS (International Financial Reporting.docx

What are the Disadvantages of IFRS (International Financial Reporting Standards) to GAAP (Generally Accepted Accounting Principles)?
Solution
What are the Disadvantages of IFRS (International Financial Reporting Standards) to GAAP (Generally Accepted Accounting Principles)?
Disadvantages of IFRS (International Financial Reporting Standards) to GAAP (Generally Accepted Accounting Principles) are :
IFRS would raise uncertainity as it permits manager to excercise their own judgement when deciding what to be reported in financial Statement, this would increase the chances of error in financial statement which would effect stakeholder i.e investor,stockholder, creditor etc
There is not much enforcement of IFRS , As GAAP has been looking by several organisation such as Securities and Exchange Commission that watches over its accounting rules where IFR does not .
It is hard to compare each financial statement as many company has different countries where each different laws & regulation and each company maintain their own accounting standard than its very hard to compare the financial statement with other company.
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1. What are the Disadvantages of IFRS (International Financial Reporting Standards) to GAAP
(Generally Accepted Accounting Principles)?
Solution
What are the Disadvantages of IFRS (International Financial Reporting Standards) to GAAP
(Generally Accepted Accounting Principles)?
Disadvantages of IFRS (International Financial Reporting Standards) to GAAP (Generally
Accepted Accounting Principles) are :
IFRS would raise uncertainity as it permits manager to excercise their own judgement when
deciding what to be reported in financial Statement, this would increase the chances of error in
financial statement which would effect stakeholder i.e investor,stockholder, creditor etc
There is not much enforcement of IFRS , As GAAP has been looking by several organisation
such as Securities and Exchange Commission that watches over its accounting rules where IFR
does not .
It is hard to compare each financial statement as many company has different countries where
each different laws & regulation and each company maintain their own accounting standard than
its very hard to compare the financial statement with other company.