In 2002, the International Accounting Standards Board (IASB) established the financial reporting standard known as International Financial Reporting Standards. These new standards are geared to consolidating accounting and financial reporting across the globe. IFRS tries to globalize the accounting and financial world through standards that allow investors to understand financial records in different countries and make an informed decision to invest or not invest. As markets become more complex, in order to facilitate the analysis of financial records, it is necessary to have the most accurate price on the market for stocks, bonds or any other financial investment.
Globalization is at a faster pace than ever before. available communication systems. The market is never sleeping, companies are interested in other countries and are able to know the current price of their investments. The IASB modifies IFRS if it considers it appropriate. The most recent amendment was announced on 8 December 2016 and would enter into force for annual periods beginning on or after 1 January 2018. This allows companies or countries that apply IFRS to adapt to changes. Although some countries have their own accounting standards, it will still apply IFRS to investors from different countries as the financial statements will be legible, which international investors will understand.
The United States has the Financial Reporting Standard, GAAP, and some companies use IFRS for reporting and affiliates in other countries. This will help companies save money by keeping only one book in only one way to capture their transactions. Companies can now easily expand to other countries because they can learn about IFRS and apply them to their current business. IFRS distinguishes a number of different standards for different categories: Accounting, Financial Statements, Accounting Standards and Auditing
Today's companies can easily grow and grow at their own country. Companies go to other countries, whether they sell their products or services, or produce their products. Globalization promotes the dissemination of ideas between companies, and European employees may have an impact on US employees. Globalization is growing with increasing support technology. Better technology products will become more efficient, delivery time will be more accurate, communication will be faster and research and development can make new products faster. Globalization has affected almost everybody on Earth and will continue to grow and expand the global economy for years to come.
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