What is meant by convergence with IFRS?
What is meant by convergence with IFRS?
In general terms, convergence means crossing over any barrier between the two, i.e. the IFRS and the Indian AS. Convergence will include an arrangement of the two sets of standards. The trade-off is finished by embracing the policies of the IFRS either completely or in a part.
What are the difference between IFRS adoption and IFRS convergence?
What is the difference between convergence and adoption? Adoption would mean that the SEC sets a specific timetable when publicly listed companies would be required to use IFRS as issued by the IASB. More convergence will make adoption easier and less costly and may even make adoption of IFRS unnecessary.
What is the so called Norwalk Agreement?
In October 2002, the IASB and FASB signed a memorandum of understanding that has come to be known as the “Norwalk Agreement.” The two boards pledged to use their best efforts to (a) make their existing financial reporting standards “fully compatible as soon as is practicable” and (b) “to coordinate their future work …
What is international convergence?
International Convergence – the process within which the International Accounting Standards Board (IASB) and National Standard-Setters (NSS) are converging their respective financial reporting standards into one global set of accounting regulations.
What is the relationship between international accounting and convergence?
Overview. The international convergence of accounting standards refers to the goal of establishing a single set of high-quality accounting standards to be used internationally, and the efforts of standard-setters towards achieving that goal.
Why is convergence of accounting standards with the International Financial Reporting Standards IFRS beneficial?
So convergence is important for the industry as well. It will allow the industry to lower the cost of foreign capital. If companies are not burned by adopting two different sets of standards it will allow them easier entry into the market. Convergence will benefit the users of the financial statements as well.
What are the main objectives of IFRS?
The objectives of the IFRS Foundation are:
- to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles.
- to promote the use and rigorous application of those standards.
Why there is a need for convergence with IFRS explain?
