Impact on Corporate Management:
Corporate management will benefit from simpler, streamlined standards, rules and practices that apply to all countries and are followed worldwide. The change will afford corporate management the opportunity to raise capital via lower interest rates while lowering risk and the cost of doing business.
Impact on Investors:
Investors will have to re-educate themselves in reading and understanding accounting reports and financial statements following the new internationally accepted standards. At the same time, the process will provide for more credible information and will be simplified without the need for conversion to the standards of the country. Further, the new standards will increase the international flow of capital.
Who requires IFRS?
Stock markets will see a reduction in the costs that accompany entering foreign exchanges and all markets adhering to the same rules and standards will further allow markets to compete internationally for global investment opportunities.
Impact on Accounting Professionals:
The shift and convergence of the current standards to internationally accepted ones will force accounting professionals to learn the new standard and will lead to consistency in accounting practices.
Impact on Accounting Standards Setters:
The development of standards involves a number of boards and entities that make the process longer, more time consuming, and frustrating for all parties involved. Once standards have converged, the actual process of developing and implementing new international standards will be simpler and will eliminate the reliance on agencies to develop and ratify a decision on any specific standard.