The directors of Paradigm have strong views on the usefulness of the financial statements after their move to the International Financial Reporting Standards (IFRSs). They feel that the IFRSs implement a fair model. Nevertheless, they are of the opinion that IFRSs are failing users of financial statements as they do not reflect the financial value of an entity.
Required:
Discuss the directors' view as above as regards the use of fair value IFRSs and the opinion that IFRSs do not reflect financial value of an entity.
International Financial Reporting Standards (IFRS) implement fair model .Assets & liabilities are recognized at fair value.
Usefulness of IFRS
Hence it can't be said that IFRS do not reflect financial value of entity.
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