"Although the 2005 adoption of IFRS was a major regulatory transition affecting several tens of thousands of companies worldwide, its costs and...

“Although the 2005 adoption of IFRS was a major regulatory transition affecting several tens of thousands of companies worldwide, its costs and benefits were initially unclear.” (George, Li & Shivakumar, 2016).

Reference:

George, Li & Shivakumar (2016), A review of the IFRS adoption literature, Review of Accounting Studies (forthcoming).

Required:

Critically discuss the above statement by outlining costs and benefits of adopting IFRS by reporting entities throughout the world. Do you think that culture has any influence on harmonising accounting standards globally?

Note 1: Word limit for Question 1 is 1,000.

Note 2: Professional marks will be awarded for format, clarity and expression.

Note 3: The presentation of Question 1 should include Introduction, Discussion, Conclusion and List of references.