Accounting Practices

Accounting Practices
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Accounting Practices
Foreign commerce transactions are more complicated than interstate domestic transactions because different countries have varying accounting standards. As a result, profit in one nation’s accounting standards could be lost in any other jurisdiction (Henry, 2020). The International Financial Reporting Standards are common even in international markets based on qualitative characteristics, such as efficiency, accountability, and transparency, critical for international financial transactions (Botzem et al., 2017). Most jurisdictions require IRFS standards for the various publicly traded corporations. Therefore, adopting IFRS is one of the costly endeavors since organizations have to adjust their various processes. Equally, external users of the financial statements should understand how to perceive how information has changed from the traditional statements.
In the contemporary world, domestic public corporations in the United States can use IFRS Standards. However, an estimate of five hundred forei...