There has been a dispute over GAAP's transition to IFRS in the United States for years. It is still unclear whether convergence or harmonization is going through accounting standards, but there are many advantages and disadvantages of the switch. IFRSs have advantages such as easy trade with international companies, cost-effectiveness and flexibility of standards. While these seem very tempting, contrary to the profession, which includes IFRSs that are not taught in many US schools, there are many contradictions regarding the implementation of standards, as well as extra costs and frameworks to jump over to small and medium-sized enterprises they absolutely need the IFRS. Considering the advantages and disadvantages of IFRSs, it can be concluded whether or not convergence occurs.
One advantage of the convergence of IFRSs on benefits and disadvantages of Galuszka Peter with IFRS is that many companies have two sets of books when they are global and need to prepare financial statements in accordance with IFRS and GAAP. (Galuszka, 2008.) This is a costly cost as the company needs two teams that employ two different accounting standards. According to one standard, the company can allocate more money to a particular sector and can not deal with two separate assets. This will make the company more cost-effective and more focused by following the standard.
In addition, the advantage of standardizing standards would improve trade simplification and investment with foreign companies. Comparability of international markets on a single basis can make financial statements of a large number of companies much easier and improve the quality and timeliness of work. Transparency, reliability and simplicity are three qualities that make the sound very attractive.
The principle of the IFRS principle is to be more flexible. Epstein gives this example: "Or historical cost or revaluation models can be used to manage long-lived assets." (Epstein, 2009.) Not only the vocabulary of financial statements is flexible but also an accounting method. The rule-based system provides a regulated and specific way to take account of each element while the principles allow companies to provide a little more room for maneuver as many companies are different and need diversified accounts
. based on the principle of IFRSs that they sometimes have gray areas and may sometimes be very unfavorable. Financial Statements are as transparent as possible due to the Sarbanes-Oxley Act. Brian Kim, author of the Harvard Journal of Legislation, states that "The Sarbanes-Oxley Act establishes a statutory auditing body (" Supervisory Board ") that oversees the accounting process." (Kim, 2003) By doing this, strict compliance with companies through indiscretions or malicious acts becomes much more transparent. Even so, IRFS has a little more room for hidden or fake presentation, so "implementation of IFRS means just as executive executives". ("Business: Ask the CPA", 2008, p.B 4.) Implementation is key to deliver the company's fair representation and value.
Another disadvantage of IFRS is related to small and medium-sized businesses. Small and medium-sized enterprises may incur additional costs that are not strictly necessary for their businesses. (Galuszka, 2008.) This does not affect them in a completely negative way but may cause some problems. "The most important difference for small businesses will be the presentation of the financial statement, the presentation of the IFRS statement may differ greatly from GAAP's customers." ("Business: Ask the CPA", 2008, pB 4.) Small Businesses do not have to have the various terms of the invoices because of their simplicity, so understanding the new accounting standards will change a lot in their financial statements  The advantages and disadvantages of IFRS are very interesting, depending on how you look at it. This research shows that many people are on the fence on IFRS, as there are many advantages and disadvantages. It's impressive to see that some pros are seen as counter-vices and vice versa. For example, the principle of IFRSs can be good or bad. In general, I believe that the benefits of IFRS exceed the disadvantages. By providing a standard package for foreign and domestic companies, there will be no confusion or over time that will try to figure out the meaning or causes of the financial statements of other companies.
Anonymous, (2008). Business: Ask for CPA. The Record (Bergen County, NJ), downloaded http://www.lexisnexis.com/hottopics/lnacademic
Epstein, B. (2009). Economic Impact of the Introduction of IFRS. CPA Journal, 79 (3), pp. 26-31
Galuszka, P. (2008). Advantage and disadvantage of IFRS. Retrieved September 22, 2014, http://www.cbsnews.com/news/pros-and-cons-of-ifrs/
Kim, B. (2003). Sarbanes-Oxley Law. Harvard Journal of Legislation, 40, 235-579.
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