Most countries (developed and underdeveloped) in the world have adopted IFRS accounting standards and ISA auditing standards.

The question is whether every country who has adopted these standards should be strictly held and accountable to the same high standards dictated by each of the two sets of standards or whether underdeveloped countries should be given special treatment or privileges while in development?

What are the advantages and disadvantages of holding them all to the same high-quality standards?

Is it fair to developing countries?

What do you recommend and why?

Please no penmanship.

 

Many countries around the world follow IFRS / IAS reporting. From now on, all countries are treated equally by compliance / non-compliance. However, the hour requirement requires that if any country is not a well-developed or developing country the country will be allowed to use and be liberated along with certain benefits from the widely accepted accounting principles (GAAP) in order to grow and stimulate the whole economy. In addition, such benefits provide an incentive for multinational corporations to establish their branches and subsidiaries in such areas, thus boosting the economies of those lands.

Step-by-step explanation

Benefits if the less developed / developing nation has the same high standards as the developed nation:

1) Reducing corruption

2) High response

3) Healthy competition

4) Growth incentive

5) Rapid development

6) Overcoming social and political problems in addition to economic crisis.

Too bad if a less developed / developing nation has the same high standards as a developed nation:

1) Unequal distribution of needs.

2) Misuse of such exemptions

It seems appropriate in developing countries because such benefits will accelerate the overall economic situation of the nation. In addition, it can help solve issues of poverty, culture, political situation etc. Therefore, the recommendations will be to add value to that developing nation.

Examples: It states that the UK is following IFRS and Israel which is a developing nation that wants to receive IFRS reporting, in which case there will be a positive report to the state of Israel where all compliance will be reduced and cover minor reporting and filing.