In 2021, on the occasion of COP26 of the United Nations Framework Convention on Climate Change in Glasgow, the IFRS Foundation announced the formation of the new International Sustainability Standards Board ISSB.
[5] IFRS Standards are required or permitted in 132 jurisdictions across the world, including major countries and territories such as Australia, Brazil, Canada, Chile, the European Union, GCC countries, Hong Kong, India, Israel, Malaysia, Pakistan, Philippines, Russia, Singapore, South Africa, South Korea, Taiwan, and Turkey.
Ball described the expectation by the European Union and others that IFRS adoption worldwide would be beneficial to investors and other users of financial statements, by reducing the costs of comparing investment opportunities and increasing the quality of information.
Companies that are involved in foreign activities and investing benefit from the switch due to the increased comparability of a set accounting standard.
He also expressed concerns about the fair value emphasis of IFRS and the influence of accountants from non-common-law regions, where losses have been recognised in a less timely manner.
[12] In 2012 the SEC announced that it expected separate US GAAP to continue for the foreseeable future but sought to encourage further work to align the two standards.
In that case the acquirer shall recognise a contingent liability even if it is not probable that an outflow of resources embodying economic benefits will be required.
This included the following criticisms:[39][40] IASB staff have responded to these observations and concluded that there were no insurmountable obstacles for the adoption of IFRS by the United States.
He sought to counter these, describing them as misconceptions[42] Charles Lee, professor of accounting at Stanford Graduate School of Business, has also criticised the use of fair values in financial reporting.
The adoption of IFRS in the European Union is a special case because it is an element of wider reforms aiming to consolidate the economies of member countries.
[47] Interestingly, member states maintain a large degree of independence in setting national accounting standards for companies that prefer to stay local.