Purchase Solution

IFRS and the Accounting Consensus

Not what you're looking for?

Ask Custom Question

Write a 1-2 page research summary on the document below authored by Sunder. Focus your paper on Sunder's five key elements of consensus for common accounting standards for multinationals.

IFRS and the Accounting Consensus

SYNOPSIS: A broad consensus in accounting favors principles over rules to guide creation of a uniform high-quality set of standards for use everywhere, and granting monopoly power to a single body for this purpose. If implemented into policy, this consensus will discourage discovery of and evolution toward better methods of financial reporting, make it difficult to conduct comparative studies of the consequences of using alternative methods of accounting, promote substitution of analysis and thinking by rote learning in accounting classes, help discourage talented youth from collegiate pro- grams in accounting, and probably endanger the place of accounting discipline in uni- versity curricula. Because the presumed benefits in the form of increased comparability of financial reports internationally or stateside are unlikely to be realized, the wisdom of undertaking these burdens remains questionable. The paper calls for a re-examination of the accounting consensus.
Keywords: accounting education; accounting standards; IFRS; uniformity. JEL Classifications: M41; M44.

INTRODUCTION
This paper presents a heterodox perspective on International Financial Reporting Standards

Purchase this Solution
Solution Summary

The response provides you a structured explanation of IFRS and accounting convergence . It also gives you the relevant references.

Solution Preview

Sunder's five key elements of consensus for common accounting standards for multinationals are the following. First the standards should be principles and not rules. Second, there should be high quality written standards of financial reporting applicable to all companies so that financial reports become more comparable and help investors and other users of financial information make better decisions. Third, to develop these standards a body should be created which will consist of select experts, have a good structure, due process, and legal funding under regulatory authorities such as the SEC, the EC, or International Organization of Securities commission. Fourth, FASB and IASB should be merged into one corporate body. Fifth, a single set of standards should be practices in the US, the European Union, and in other ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • US vs International Financial Reporting Standards

    The roadmap proposed by the SEC is a combination of convergence (where U.S. and international accounting rule makers collaborate to eliminate differences between GAAP and IFRS) and conversion, where USA would "flip a switch" and migrate from US GAAP to

  • IFRS v. US GAAP

    Finally, of the two rules, the IFRS is the one accepted in Ireland. References: 1. El-Gazzar, Samir M., et al. "Restatements and accounting quality: a comparison between IFRS and US-GAAP."

  • How do GAAP and IFRS differ?

    423069 How do GAAP and IFRS differ? The U.S. is scheduled to begin moving from Generally Accepted Accounting Principles (GAAP) to IFRS by 2014. At least three questions are worth discussing: 1. How do GAAP and IFRS differ? 2.

  • Pros and cons of implementing IFRA in the USA

    GAAP and IFRS have many similarities and both hold the highest accounting standards in the world.

  • Brief summary of article

    (1)Transition Costs: For employing the IFRS in the accounting system, the U.S. companies will have to bear various transition costs like costs related to adjustment and amendment in the current accounting systems and documentation, training cost,

  • US GAAP vs IFRS: Principles Based or Rules Based

    This solution first gives an overview of what the IFRS and the US Generally Accepted Accounting Principles are.

  • H&M Accounting and Exposures

    Retrieved from https://www.pwc.com/us/en/issues/ifrs-reporting/publications/assets/ifrs-and-us-gaap-similarities-and-differences-2014.pdf The differences between GAAP and IFRS and exposures to H&M because of differences in accounting.

  • Ericsson Case Study

    If I were in the position of CFO, I would recommend that Ericsson adopt the IFRS as adopted by the EU, largely due to the fact that Ericsson has found that there is essentially no difference between the full IFRS and the IFRS as adopted by the EU for

  • GAAP vs IFRS for ETIF Issue

    Difference in Accounting Treatment The accounting treatment for the investment companies, by real estate companies is different as per the IFRS and US GAAP.

View More Related Solutions