Advantages and challenges of IFRS: a review of literature

Globalisation has integrated the national economies into the international economy through various modes like foreign direct investment, trade, capital flows, etc. Enterprises are carrying on their business worldwide. As we know that accounting is the language of business, therefore businesses around the world should not use different languages while sharing financial information. As a result, use of IFRSs is gaining momentum across the world which is regarded as more principles based rather than rules based standards. The process of convergence with IFRSs is likely to provide a lot of advantages to the parties like corporate world, investors and overall country. But this process is also surrounded with many challenges faced by abovementioned parties. So, this paper is an attempt to focus on the benefits and challenges posed by the implementation of IFRSs worldwide and some suggestions are also mentioned to beat some of these challenges and hence, to smoothen the process of convergence.