Author(s)

Ning Yang

Corresponding Author

Ning Yang

ABSTRACT

In the modern business environment, many businesses are required or encouraged to establish a good financial reporting system in place with the objective of operating the businesses successfully. Taking such an objective into consideration, accounting professionals and accounting regulators in the international accounting industry have been trying to put a financial reporting system that is harmonized and robust in place over the last couple of decades. International Accounting Standards Board (IASB) developed the well-known International Financial Reporting Standards (IFRS) which were officially adopted by members of European Union in 2005. After 2005, many other countries have decided to use IFRS as their accounting standards as well. However, while the implementation of IFRS has provided benefits and convenience for those countries, it has also attracted a certain degree of criticisms for the associated issues. In this paper, the definition of IFRS is firstly introduced. Secondly, the benefits of implementing IFRS are discussed, which is then followed by the discussion of issues and criticisms associated with the implementation. Finally, a conclusion is provided at the end of this essay.

KEYWORDS

IASB, IFRS, current issue