Challenges
The Analysis is concerned with the academic research material and giving the possible results with respect to the economics. For analysis, it evaluates the key possible suggestion which the United States admires. This analysis is done for both aspects; the United States, and the rest of the world. Moreover, the challenges faced by the bodies are doing empirical analysis to justify the accounting standards and their global changes. There are also some problems which are faced by researchers to explore the unanswered questions under the standards requirements. By concluding this article and its impact; the main challenge was faced by the United States to choose the standards between International Financial Reporting Standards IFRS and General Accepted Accounting Principles GAAP. To overcome these challenges the United States formulated some scenarios that help to deal in IFRS and GAAP.
The empirical relations of the Standards are based on the practical methods which the rest of the world is following as well as their reflections around the globe. This regulation and standards are done with the understanding of the given jurisdictions. Basically, they are concerned about the matters of the trade and Free Barriers with and without the economy of the country. The United States wants to adopt International Financial Reporting Standards IFRS because of the Capital Market, Regulatory Scenario and Political Scenario which reflect their Potentiality of the Economy. One of the sub-continent apply with same feathers, which United States Want to apply and they improve on their cost of capital, Liquidity, investment decisions, regulatory authority and co-existence of the market norms. Subcontinent and Europe is implementing on it a hundred percent. These are the key points from which United States can take the idea and implement their IFRS compliance with effectiveness. The factors are dynamic in the economy of the country as well as for the global economies. The compliance is effective, but on another part of the economy, it is ineffective and un-equivalent to the market norms and their impact. Future researches will be concerned with the construction and the appropriateness of the results of the financial statements and their efficiency that impact changes with the global atmosphere. In any economy where the country`s heads are setting the standards which will have multiple effects under the current jurisdiction. The comparison examines the past and current performance of the organization with their relative procedure, but they need one rule for easy comparisons and format guidance.
In addition, the researcher further examines the part of the article which is based on the law and enforcement criteria with the discussion of the regulations of the country. The researcher examines their side effects and their efforts to sort out all the matters relating to the Accounting Boards and their Standards which have to maintain. In favor towards International Financial Reporting Standards, that it gives guideline to an economy that reflects on the quality, comparability, networks and external and compatibility effects. The quality effects show the reporting effectiveness, comparability relates to the comparison of the multiple year data of financial statement, Network and External relates to stakeholders of the financial statements and compatibility means the financial results of the organization which gives the strong point of the enterprise. These are all the results through which the United States will improve the performance of the economy and resolve the problem of the political factor results. Furthermore, the evidence in the financial statement is very necessary for evaluating the performance as well as the economic indications. This is the relative contribution towards the Accounting standards which is observed during the reporting of finance. The main forces that are still on the market institutions which are the economy, stocks and other financial statements deals under the shape of the resources. These efforts give guidelines to the enterprise in believing the results or not. These are basic challenges and their solution for adapting the International Financial Reporting Standards versus General Accepted Accounting Principles.
Scenarios
Now comes, the concerns on the scenario side, which discusses all the pros and cons of each scenario. Basically United States wants to change the circumstances, according to the future expected changes with respect to the Potential Political affects. The scenarios, one is to “Maintain the United States, Standards, which is General Accepted Accounting Principles” the pros are that the local economy has favored, but the cons of the political factors are giving not positive implementation. Second special changes in the IFRS and GAAP is that company should entertain, otherwise maintain the standards of General Accepted Accounting Principles “GAAP” which means that some of the enhancement of the standard will be entertain and other will be followed as they are. The pros were showing the diversification, but the cons are focusing on their self-stake and not thinking about the economy. Third, giving the choice of the Standards, either they follow....................
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