Analysis and their Outcomes
Finally, the analyses and scenario shows that the adoption of the International Financial Reporting Standards strengthens the economy and the political environment. By adopting IFRS it gives easier access to all the countries of financial Information on the single format which will provide equal reporting standards and which will be easy for both ends, the capital market and the Stakeholders. On the other hand, International Financial Standards and International Accounting Standard Boards play a monopoly, which is not good for the economic concern because it will create problems in the decision of the standards and create hurdles in the appropriate suggestion. When you look at a glance, the IFRS method shows the best quality, but it contains some mistakes which are full filled by the General Accepted Accounting Principles GAAP. The IFRS is covered with sixty percent of the world. So, for the comparison, it can easily access the insider information which is evolving around the World Banks and International Monetary Fund. These are basic outcomes of the analysis and practical knowledge of the environment. The United States have to look out all the criteria and solve their upcoming challenges of the potential political factors. Therefore, opportunities occur for future research to define, capture, and quantify the mosaic of a firm’s information environment of which IFRS is just one component, as well as to analyze how this broad mosaic affects reporting and economic outcomes.
Accounting Regulation
There are two types of accounting regulations in which whole system exist which are mentioned in the article are International Financial Reporting Standards and General Accepted Accounting Principles. These two are regulatory bodies set the standards of accounting and the effects change with respect to the business norms and political effects. Furthermore, IFRS is covering most of the countries as compared to GAAP. The reason is very short and simple that is IFRS is providing the Quality of Work with explanation and their justification. Moreover, the one more regulation is the Financial Accounting Standards Board, which is the researcher for the GAAP and providing guideline on the new environmental changes in the Accounting. GAAP standards are solely run in the part of the United States, which nowadays are weakening because of the Securities and Exchange Commission and Political factors. Further, they indicate that adoption of the IFRS is more because of the potential factors of the politics.
Future Scenario of Accounting Standards
In this part, the highlights of the accounting standards are showing the possible outcomes of the reporting in sense of quality and comparability. Moreover, they evolve the incentives of reporting and existing United States Institutions and Potential cost on the long term basis. The comparison will be viewed on the macro level of economics and their implications.
Conclusion
Finally, this Article has two parts, one part is already dealt in another portion, but the other part of the article contains the analysis of the economy and their policy factors which are related to the adoption of the International Financial Reporting Standards. This part also extends their analysis in respect to the different scenario basis, which gives the guideline to adopt the IFRS or still maintain the GAAP standards. Their solution will be given in the light of global activities towards the IFRS. The policies and regulations reflect the changes to the standard setting requirements process and following keys identifications.
- Substituting to IFRS would principally govern the Monopoly status criteria towards the International Accounting Standard Boards.
- IFRS implementation has political assistances, indicating their willingness towards the United States with the world.
- Upholding legislative control for the accounting principles in the method of endorsement to procure the financial assets.
- The “United States” might add the disclosure requirement which International Financial Reporting Standards is doing that is giving the information to the stakeholders of the enterprise.
These are key potential political and economic factor in the whole article which some of it is favoring International Financial Reporting Standards and International Accounting Standards Board & some are favoring the General Accepted Accounting Standards, but the major portion of the standards is covered by IFRS. The reason is simple, International Accounting Standards provides the quality of the work, but the major defect in this method that it creates the problem of Monopoly, which economy does allow, because it create hurdles in the performance decision. Its impact is all over the country. Furthermore, the reason is covering more area, at a glance it gives the best guideline and it brings good for the United States with a comparison of Securities and Exchange Commission. These all are things which the article describes and their way of outcomes................................
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