Question

potential issues in adoption of IFRS.

Answer 1

Answer:- The potential issues in adoption of IFRS are cultural issues, legal impediment and political influences. Implementation challenges also effect the adoption of IFRS it includes :- timely interpretation of standard, accounting knowledge and must be having a knowledge of financial statement and continuous amendment of ifrs should be done.

It has the potential to facilitate decrease information cost, increase reporting trancperancy, cross border comparability and reduce information asymmetry so it increase the liquidity, competition and efficiency.

It also found that small businesses in US are not prepared for ifrs because they do not see the benefits in switching from GAAP to IFRS.

Adopters need assurance of IASB with stable funding, staffing and appropriate governance to ensure standard setting process is free from undue influence.