Nipahoy, Sarah Jane D.

BSA 1C 3016

Financial Reporting Case

1. What is the International Accounting Standards Board?

The International Accounting Standards Board, typically abbreviated IASB, is the
organization that establishes international financial reporting standards or IFRS that are
accepted throughout the world.

2. What stakeholders might benefit from the use of international accounting standards?
The case is concerned with the international markets specifically and therefore those
who operate in these markets would certainly benefit from the use of International
Accounting Standards. These include international investors; they would find it more
convenient to compare their business performance with other international companies.
Internal stakeholders, including the management, would also benefit from a standard
set of rules to govern the financial reporting. This would eliminate a lot of confusion
when preparing financial reports. Creditors, lenders, and governments would also
benefit.

3. What do you believe are some of the major obstacles to convergence?

I believe that the major obstacles that will come from trying to converge the IFRS and
GAAP will be in the creating of new accounting standards and regulating the consistency
of the standards. I believe that the process would be long and difficult as the two boards
attempt to communicate how to create the new standard. It will also be difficult for the
two boards to create universally accepted accounting standards because each country
has a different economy and have different processes when it comes to their
businesses. Users will not be able to compare both financial statements when they are
based off of their separate economic practices.