International Financial Reporting Standards (IFRTS) is part of the international accounting standards used by companies in many countries to prepare financial statements, IFRS serves to improve the level of transparency, with comparisons and quality of reports that optimize kelungan several interested parties to make decisions
This IFRS provides convenience for companies and stakeholders to increase transparency with principles-based work frameworks that facilitate the possibility of companies in presenting detailed and transaparn finances, foster Investor confidence reports made in accordance with IFRS principles are more qualified so that they increase incestor confidence, simplify the decision-making process with accurate information that can be a consideration that changes strategic decision making by management and investors. The ease of comparison with the use of a consistent IRFS method allows mobal owners to compare financial statements between companies in the same industry and industries engaged in different services. Reducing Audit costs just as implementing new applications in a company at an early stage requires substantial improvements, IRFS can reduce long-term audit costs by facilitating efficiency and clarity of information.
In implementing new things in an organization must have a variety of challenges such as complex standards with complicated rules often require technical adjustments, installation costs at the beginning of the installation of the implementation of the IFRS system tentnuay require considerable costs ranging from infrastructure completion, system updates, employee training and consultation with experts, adjustments to company resources several factors such as company size, industry and availability of resources affect the effectiveness of IFRS implementation, technical expertise needs companies need to consider skilled and experienced staff to ensure proper implementation of IFRS
This system runs dikatakn landar and effective when the quality of information submitted describes the appropriate information and can be diperpaya, a benchmark that shows that the company has been running according to the standard is the company has run a financial penginyangan in accordance with the IFRS guidelines, in the user satisfaction feedback report tealh provide lapofan that then it can be ascertained
Regulators play an important role in evaluating the effectiveness of IFRS by monitoring implementation, providing technical guidance, and enforcing compliance. Auditors also have the responsibility to evacuate the reliability of IFRS-based financial statements and provide confidence to stakeholders.IFRS has a significant impact on helping investors make decisions. The more reliable and comparable Informaxi makes infestor more confident in assessing the company’s performance. In addition, IFRS facilitates international comparison, which is very important in the current era of globalization.
Long-term focus IFRS by providing simplification and clarification to reduce the complexity of the system and reduce the application to many companies, convergence with different standards dazzle some differences in other accounting standards that are different in each country to become a single unit that is easily understood globally, meet the needs of a broad market by providing a change in business models
IFRS forms an accounting framework that provides many benefits to the company and also stakeholders as stakeholders such as guarantees, investor confidence in the company and ease of comparison but to apply itself requires great effort to face the complexity and initial capital with continued experience IFRS will continue to invest to adjust to become a standard uatamenghasilkan unique reports at world level