GASPRO International Journal of Eminent Scholars

The widespread adoption of International Financial Reporting Standards (IFRS) heralded a new era in financial reporting. From 2005 onward, publicly traded firms in more than 100 countries have been progressively required to prepare consolidated financial statements under IFRS (IASB, 2011). Realization of the anticipated benefits to be derived as a result of the change from National Generally Accepted Accounting Principles (GAAP) to IFRS in terms of improved quality of financial reporting is the core motive of the proponents of general adoption of IFRS. Supporters of IFRS adoption argue that benefits will flow from expanded financial statement disclosures, improved measurement and recognition practices, and the narrowing of differences in company reporting arising when a variety of national GAAP is used (Schipper and Whittington, 2005).The acceptance is also based on the concept of convergence of accounting standards to minimize areas of differences in reporting formats across international borders.