Financial Analysis Of The International Financial Reporting Standard

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Global Market Financial Reporting The monetary integration of global business as made it imperative to use an accounting standard such as the International Financial Reporting Standard that is comparable and easy to translate internationally. Thus, the International Financial Reporting Standard is the universal financial reporting language that is practice globally, excluding the United State. The International Financial Reporting Standard allows foreign companies to report transactions and other information in a common financial or accounting format. The format permits international companies to have consistency, stability, and transparency in reporting transaction and financial information around the globe. Therefore, the International …show more content…

The consistence of the IRS guide lines aid users in analyzing the performance and position of many companies that are relevant to each other. Having a consist reporting standard benefits individual, business, and other users of international financial statements by lowering the cost of ill investment and bad business decisions because of the lack of quality and use fullness of …show more content…

It is very important for business in the global market to have consistence when reporting their financial statement in order to maintain the effectiveness and reliability of financial information. The stability in the way information is reported using the International Financial Reporting Standard permits users to have a stable set of guide lines that allows a more in depth comparable analysis of a company’s net worth across a period of time compare to other similar business sectors. Having a set of principles is very essential tool in reporting finances in the global market. The IFRS establish a set of principles that allows a person or other users to make an assessment on the stability of the global market through company’s financial statements that are cohesive in nature. The stability in reporting information on the financial statement is imperative to the economic, growth, and development of the business sector and to other user of financial information to draw conclusions based on the information at hand. For example, the International Financial Reporting Standard as set guide lines such as companies have to use the Fair Market Value of their property worth at the time they report it on their financial statements, not the original purchase price. Thereby, allowing individual and other entities to compare

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