BENEFITS OF IFRS

IFRS stands for International Financial reporting Standards. These are the standards issued by the International Accounting Standard Board. It also covers the wide range of International Accounting Standards issued by the International Accounting Standard Committee. IFRS has replaced the GAAP (Generally Accepted Accounting Principles). These standards are to be used by the business organisations that are engaged in commercial, financial, industrial and other similar activities. IFRS are very useful for business enterprises carrying on the business worldwide. The benefits of IFRS are as follows:

HELPFUL TO ENTERPRISES OPERATING GLOBALLY

The business entities having business operations in different countries will face problems of consolidation of financial statements of they prepare their financial statements according to the standards prevailing in different countries. IFRS unify the accounting practices worldwide as a result of which the problem of consolidation is avoided.

HELPFUL TO INVESTORS

Investors require high equality, relevant, reliable, transparent and comparable information in financial statements in order to make economic decisions. The use of common set of high quality accounting standards i.e. IFRS would be helpful to investors in comparison to financial statements prepared under different accounting standards adopted by different countries.

HELPFUL IN INDUSTRY

The obtaining of funds from outside the country becomes easier if the financial statements comply with Globally Accepted Accounting standards. Now a days most of the stock exchanges require information as per IFRS and convergence to IFRS would enable Indian Companies to access international capital market easily.

LOWER COST OF RAISING FUNDS ABROAD

The cost of raising funds abroad can be minimized under IFRS as there will be no need to prepare two sets of financial statements- one set on the basis of IFRS and another on the basis of Accounting Standards.

HELPFUL TO ACCOUNTING PROFESSIONALS

Accounting professionals will be able to provide better services in countries adopting IFRS.

TRUE AND FAIR VIEW

In IFRS based financial statements assets are valued on the concept of true and fair value i.e. on the basis of their market value. Indian Accounting Standards ignore this concept.

Also Study	Also Study	Also Study	Also Study
Accounting	Non profit organisation	Depreciation	Liquidity ratios
Nature of Accounting	Receipts and Payments Account	Depreciation Accounting	Acid Test Ratio
Benefits of Accounting	Scope of accounting	Hire Purchase Accounting	Cash Ratio
Difference between cost accounting and financial accounting	Financial accounting, cost accounting and management accounting	Difference between hire purchase and instalment system	Financial ratio analysis
Difference between transaction and event	Transactions	Users of Accounting	Ratio analysis
Limitation of Accounting	Capital Expenditure	Instalment System	Difference between consignment and sale
Book Keeping	Revenue Expenditure	Reserves Accounting	Abnormal loss vs normal loss in consignment
Accountancy	Difference between capital and revenue expenditure	Provisions	Treatment of loss on consignment
Accounting as science or an art	Accounting Equation	Single entry system	Accounting treatment of consignment
Book Keeping vs accounting	Deferred Revenue Expenditure	Difference between statement of affairs and balance sheet	Joint venture vs consignment
Book keeping vs accountancy	Capital receipt	IFRS	Departmental Accounting
Accounting vs accountancy	Revenue receipt	Balance Sheet	Methods of departmental accounting
Basis of Accounting	Difference between capital and revenue receipt	Profit and loss Account	Allocation of expenses in departmental accounting
Branches of accounting	Difference between accounting concepts and conventions	Trading Account	Inter-departmental transfers
Cash and mercantile system of accounting	Accounting Standards	Voyage Account	Different types of branches
Accounting Principles	Objectives of Accounting	Accounting for Incomplete Voyage	Departmental vs Branch accounting
Golden ru les of accounting	Process of Accounting	Joint venture	Methods of branch accounting
Double entry system of book keeping	Scope of Accounting	Joint Venture Vs Partnership	Incorporation of branch trial balance
Double entry vs Single entry system	Accounting Concepts vs Accounting conventions	Methods of recording transactions in Joint Venture	Garner VS Murray Rule
History of Accounting	Difference between provisions and reserves	Consignment