Why to choose ifrs?

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Why should a company choose international financial reporting standards instead of the U.S generally accepted accounting principles? What are the benefits of using IFRS?

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score 0 · Answer 1 · 2012-12-02T20:40:38+00:00

First of all, most companies have two choices. Either GAAP (US, UK etc) or IFRS. GAAP is a widely used and highly robust framework. On the other hand, IFRS is a forward looking action. GAAP is gradually being harmonized with the international financial reporting standards. IFRS is getting updated really frequently to either catch up with the economy trends and events or to boost the confidence in the financial markets. In any case, as I said, I think that choosing IFRS is a forward looking move.