Barriers to Adoption of International Accounting Standards Free Essay Example, 3000 words

The key objectives of accounting standards are identification, measurement, and reporting of financial information of the organisational entities to the stakeholders. Financial accounting is a process culminating in the preparation of the financial reports of the organisations. These are done for the use of both the internal and external stakeholders. These financial statements include the balance sheet, the income statement, and the statement of the owner s equity and cash flow statement. Moreover, reporting the assets and expenses and other disclosures are also pretty significant in financial accounting and reporting. There are a number of factors which have been influential in the accounting literature. Since the inception of accounting standards, political factors have been quite influential in the development of financial accounting standards in any region. The adoption or non-adoption of the international accounting standards may be at the discretion of the strong political an d business entities. The most significant source of force to influence the development of accounting standards is user groups. These groups include the parties more affected by accounting standards, rules and regulations. Accounting standards are as much a product of political action as they are of careful logic or empirical findings (Wiley, 2002, p. 14). We will write a custom essay sample on Barriers to Adoption of International Accounting Standards or any topic specifically for you Only $17.96 $11.86/page