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2.2.4
Advantages & Disadvantage Converging IFRS
According to Regional.Roll (2008), IAI said that the
adaptation
to
the
IFRS
standard will
beneficial
to
the
comparative
financial
report
and
the
improvement
of
transparency.
Through
this conformity,
financial report of Indonesian companies can be
compared
with
financial
reports
from other
countries,
so
that
we
can
see
clearly
which
companies
that
have
better
performances.
IAI
also
stated
this
convergence
will
beneficial
to reduce the capital
cost, increase
investment outside the borders and reduce
the reporting cost.
Based on Vyas (2009), the disadvantage to converge PSAK into IFRS
is difficult
and nearly impossible to implement it. As a proof, there are some cases in the European
Union, converge accounting standards is more difficult than converge accounting
practice. Vyas (2009) also stated that the harmonization will has various differences in
commercial
environments
to
each
country.
Multi-national
companies
and
global
financial markets have already survived without the convergence.
IFRS
will
be
the
main
reference for the financial accounting
standard
development in Indonesia, because IFRS is a standard that prepared by experts and
advisory
board
from around
the
world.
After
IAI
has
declared
the
convergence
with
IFRS, then in 2012 all the standards that made by DSAK
(Dewan Standar Akuntansi
Keuangan) will refer to the IFRS (Regional.Roll, 2008).
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