A. IFRS Convergence: Learning from Mexico, Brazil, and Argentina I found it very

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A. IFRS Convergence: Learning from Mexico, Brazil, and Argentina

I found it very interesting as far as the relations between India's long haul towards converging their Ind as GAAP with IFRS and the United States ongoing conversations regard a convergence of our GAAP with IFRS to the international issue of global warming. Even though these issues are different, they are the same because it is something we potentially have the power to fix but we cannot do it alone. If there was not a concern of preserving the environment in any way, these would not be of an issue, but they are and need to be addressed as they are today.

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B.   What have the IASB and FASB convergence efforts achieved?

I believe IFRS conversion might actually be more than one time costs. I mentioned earlier in class a point that needs to be addressed and that is the impact on our educational system. It will require a substantial cost to convert but the long-term benefits will likely exceed the costs.

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Explanation / Answer

Ans A: Climate change has now become a global risk and there is a serious need to come up with a plan to save the mother earth and since IFRS has come up with required disclosure, assessment of climate change risk brought by a company is a good move towards this initiative of saving earth by global warming, though It would be bit expensive but at long race it is beneficial for both the companies and human kinds as well. Hence there is a must need that everyone should come together and bring this change required for reporting standards. That IFRS can do if implemented unanimously.

Ans B: It is true that implementing IFRS requires huge amount of man power and money, but It definitely has a long term perspective in it and in the long term, it is going to give more benefits than it incurs the cost now. It has multiple benefits attached to it, since now a days world has become a global village, there are no boundaries attached in the business, IFRS provides the benefits of comparing the financials of foreign companies as well, also now a days many companies have business units setup in different countries IFRS gives an opportunity to have the same sets of reporting requirements across the globe, another benefit is that when you have implemented IFRS which is known internationally then It is easy to get the external finances from various banks located outside your countries, IFRS also makes it possible doing trading across the security exchanges around the globe, hence in nutshell in starting implementing IFRS is a bit costly but It has long term benefits attached.

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