more-arw search

IFRS Delays Cast Doubt on its Value

Experts in India have begun to question IFRS adoption as implementation ...

The United States' delay in implementing International Financial Reporting Standards has sent ripples across the accounting world, and some other major economies are taking it as a sign that adopting global accounting standards might not be a necessary step after all.

"The momentum for convergence of accounting practices globally has slowed down," according to Business Standard. "It received a thrust when EU member countries converged their accounting standards with IFRS. This happened in the year 2005. After 2005 only a few important countries (e.g., Canada, Republic of Korea and Russia) have adopted IFRS from 2011/2012."

In India, for example, the market for IFRS training has slowed considerably, while companies have stopped prioritizing building capabilities to shift to the new standards, the source reported.

Rather than having a unified set of financial standards, it is the overall attractiveness of a particular market that will spur investment, the source said. Not only is India a rapidly-growing economy that attracts investors from around the globe, Japan, long the No. 2 financial power in the world, had no difficulty growing under very different accounting standards from the rest of the world. It only updated its accounting standards in the early 1990s, according to the source.