Demerits of IFRSs
Write down the demerits of IFRSs.
Expert
Demerits of IFRSs:
• It is hard to concur on the global accounting language and whether it must be based upon principles or rules. It will mean which national models of best practice might be lost.
• There will be preliminary training costs for preparers, auditors as well as enforcers.
• Fair value accounting leads to volatility and might reflect estimation managerial manipulation or noise.
• Although some regulatory co-ordination, economic forces and political will lead to inconsistency in the implementation.
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