"Nearly all of the jurisdictions (156 of the 166) have made a public commitment supporting a single set of high quality global accounting standards. Only Albania, Belize, Bermuda, Cayman Islands,...

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"Nearly all of the jurisdictions (156 of the 166) have made a public commitment supporting a single set of high quality global accounting standards. Only Albania, Belize, Bermuda, Cayman Islands, Egypt, Macao, Paraguay, Suriname, Switzerland and Vietnam have not." (www.ifrs.org (Links to an external site.))
Australia, along with Europe and a few other countries, was one of the initial adopters of IFRS for domestic purposes. In 2022, as found in the statement above, 156 jurisdictions have now adopted IFRS. Adoption of IFRS is different in each of the diverse countries across Latin America. Critically evaluate whether Paraguay should fully adopt IFRS or whether they should continue their current program.
In your discussion please include (but don’t limit yourself to these points(sad)
Historical context of IFRSBenefits/costs of IFRS adoptionTypes of entities that will need to adopt
Answered Same DayApr 05, 2022

Solution

Ayushi answered on Apr 06 2022
17 Votes
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International Financial Reporting Standards
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Essay:
IFRS is a short form of international financial reporting standards. It can be described as a framework of accounted which is accepted on an international level for the purpose of organizing the financial statements and preparing a report. The derivation of IFRS is done from the pronouncements which are mentioned in the International Accounting Standards Board (IASB) based on London. It is required by IFRS that reporting of the financial results and its position should be done by using the same set of rules which means that any kind of manipulation which can be done fraudulently is ba
ed. As all the business uses the same standards of IFRS, therefore uniformity is maintained in financial reporting which makes the task of comparing the results of different organizations easier.
Primarily international financial reporting standards were used by all over the world for the purpose of financial reporting except United States. In United States Generally Accepted Accounting Principles (GAAP) is used as a framework of accounting (Bragg & Bragg, 2022). There are more rules which are required to be followed in GAAP as compared to IFRS.
There are many benefits of adopting IFRS whereas it also involves some costs for using them:
Benefits:
· Comprehensive financial statements with more accuracy are provided using IFRS. It becomes easier for the investors and other stakeholders to understand the financial reports which are prepared by a company using the IFRS. It is because of the understandability of the IFRS and they do not require any other sources for the purpose of understanding the financial reports.
· One of the features which add more value to IFRS is that the loss gets recognized immediately ("Advantages and Disadvantages of IFRS compared to GAAP - Research-Methodology", 2022). This benefit is not only for the investors but it’s beneficial for other stakeholders of the company also.
Therefore we can say that adoption of IFRS in an organization provides multiple benefits with a key focus on the comparability factor by using the standardization of the standards through...
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