Final Project

In todays era of globalization more than 120 countries have adopted International Financial Reporting Standards ( IFRS ).International Financial Reporting Standards(IFRS) is set of accounting standards developed by independent, non-profit organization named as International Accounting Standards Board ( IASB ).IFRS help in preparation of common and universal standards for preparation of financial statements and avoids industry specific reporting rules. IFRS refers to high quality accounting standards at an international level so as to increase cross country investments which can be in form of foreign direct investment or foreign institutional investment in both growing and developed economies. These will provide universal reporting language to the world and will simplify the accounting procedures throughout the world.

I selected this topic for my research because it is in the interest of U.S corporates to deal with turbulent international business environment which has both opportunities and challenges. It is very important for business firms to adopt IFRS as they cant not access the international capital markets for funding either equity or debt or have subsidiaries in other countries without duplication of valuations and reporting. In U.S Securities and Exchange Commission ( SEC ) has the authority to take or not to take decision of adoption of IFRS. Recently U.S is using Generally Accepted Accounting Principle ( GAAP ) instead of IFRS. The idea behind IFRS is just the same like the whole world doing trade, valuing the commodity, share prices in U.S dollars so that things can be simpler, easy, less complex and valuation can be same to all the international buyers and sellers. Problems do arise for a international company when its subsidiary pays tax in a country on the basis of the domestic reporting system of that country and on the other side it does not fit in consolidation with its parent company which is following a different accounting system