The International Accounting Standards Board provides Financial Reporting Frameworks which are accepted globally to many international business organizations. These accounting standards are being accepted in many countries. However several countries stipulate that the generally accepted local accounting standards be followed. While this is applicable to mostly government undertaking companies private companies have the freedom to choose international accounting standards.
Through the implementation of international financing reporting standards better transparency Â is established for accounting practice. And this standard boosts cash flow of capital investment among investors and stakeholders. Raising capital from international markets is much easier through the adaption of international accounting standards.
One of the main advantages of International Finance Reporting standard is the relief from following nationwide accounting standards. Those countries which follow accounting standards accept the financial reports and eliminate the need to prepare it for separate countries. This also reduces the time and cost required for making the accounting document for each country.
As International Accounting Standards are flexible to the global environmental variables more standardized reports can be prepared calculating the expected and unexpected changes. The standards which are generalized can be applicable to various laws under various circumstances which makes it more generalized in use.