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Does IFRS enhance the presentation of financial statements?

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  1. Introduction
  2. The perverse effects of financial globalization
    1. Tax havens and offshore centers: new spaces of lawlessness
    2. The issue of terrorist financing and its difference with the money
  3. The fight against money laundering faces a degree of impunity
    1. A stronger fight
    2. Limited effects
  4. Conclusion

The international financial environment is constantly changing ever since the International Financial Reporting Standards [International Financial Reporting Standards] (IFRS) have been implemented. Moreover, the unprecedented financial scandals of recent years have further accelerated the process. The main objective was to enable an accurate comparison of the systematic financial statements produced by companies around the world. These standards set out the requirements for the recognition, evaluation, presentation and the information processing of transactions in the general purpose financial statements.

Therefore, it is legitimate to question this heavy task, and inquire about the advantages and the inconveniences generated by adherence to a common repository. But this study does not focus entirely on this aspect. All companies are not yet ready to follow the new standards, even though the accounting changes are made gradually. For now, these are all listed companies publishing consolidated accounts which are responsible for preparing financial statements as of January 1, 2005. In France, groups that are not listed may also choose to opt for maintaining the standards or rules applicable to the consolidated nation.

This major project represents a significant step forward in the field of accounting and finance, but it is doubtful if such a goal can really improve the financial statements. We will see at first the concrete steps made by the establishment of a common reference, and then we will analyze the accounting differences that have already been identified.

It seems important to recall how IFRS was created. The International Accounting Standards Board [International Accounting Standards Board] (IASB) was established in 2001 as part of the Foundation of International Accounting Standards Committee[International Accounting Standards Committee Foundation] (IASC).The objectives of IASC and IASB are:

- Develop unique understandable accounting records around the world with high quality, transparent to help the various economic players in their financial decision-making
- Promote the use and rigorous application of these standards
- Convergence of IAS, IFRS and national standards with respect to quality solutions

The leadership of the IASC is composed of twenty two directors known as "Trustees" who are responsible for identifying members of the IASB, the boards and committees related to purchase and the financing of the organization.

The IASB is the standard setters and the IASC Foundation has twelve members. It is the responsibility of approving the IASB International Financial Reporting Standards and related documents such as paper sand Interpretations of IFRS. Before the creation of the IASB, International Accounting Standards (IAS) and related documents were prepared by the IASC Board, on June 29, 1973.

The application of financial reporting became mandatory from 1 January 2005 and 1 January 2007 for companies with only listed securities other than shares. This adoption also had a rippled effect because many countries in the image of Armenia, Egypt, and the Ukraine were already using in whole or in part the international benchmark. In France, groups that were not listed also chose to opt for standards.

Tags: International Financial Reporting Standard, systematic financial statements, The International Accounting Standards Board, economic players, financial reporting, international benchmark.

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