International Financial Reporting Standards Essay - 4

International fiscal Reporting Standards - screen ExampleAs much(prenominal), it does not dodge an industry particularized platform that guides and regulates its stylus of report.The existence of financial reporting standards declare crossways the planetary platform, such as IFRS, is important peculiarly to multinational stacks and planetary companies that operate in antithetical countries across the solid ground, with subsidiaries and interests in countries with different approaches to financial accountancy and reporting. Therefore, the existence of such externally hold reporting standards enables these corporations to unite their financial statements, in particular when returning the dinero from subsidiaries to the parent company. A good event of such a multinational corporation that has overseas subsidiaries is the MacDonalds Chain of Restaurants, whose start give away company is in the united states exactly is has a globose presence with its restaurants fixed in major(ip) markets across the world such as Asia and Europe.Despite the numerous benefits that come slightly to international corporations with their usage and drill of the IFRS guidelines, its application is not so efficient as an accounting dress because it acts merely as a guideline and not as a determine, or a principle, which accountants should prolong and adhere to when preparing and reporting financial statements. This rule out the surmise of all companies applying these standards in their reporting and facility of financial statements because there is no effective means of enforcing these standards. The need of a inexorable enforcement mechanism makes it really difficult for international companies to apply IFRS principles in accounting. As such, these companies hardly follow these rules out of choice, oddly because they neediness to achieve a global look, quite an than following the formalities.However, if in the event these companies, especially th e multinational