Journal of Applied Finance & Banking

International Financial Reporting Standards (IFRS) and Its Influence on Pakistan

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• Abstract

  Worldwide application of IFRS (International Financial Reporting Standard) not only standardize the accounting treatments but also helpful in producing true and fair financial statements. All the counties using IFRS (International Financial Reporting Standard) can easily make comparisons of their financial statements across the industries and countries. Because of its fair results these are highly reliable standards for the allocation of resources and for keeping the accounting records. ICAP (Institute of Chartered Accountants of Pakistan) is responsible for the implementation of these standards in Pakistan. ICAP (Institute of Chartered Accountants of Pakistan) suggests theses standards to SECP (Securities and Exchange Commission of Pakistan), SECP (Securities and Exchange Commission  of Pakistan) implement these standards but there are some contradictions between these standards and the companies’ ordinance 1984. ICAP (Institute of Chartered Accountants of Pakistan) council formulates a strategy to provide a roadmap for the implementation of these standards. Despite of all its advantages IFRS (International Financial Reporting Standard) adoption gave some challenges e.g. Non-compliance with existing regulations, different views of SECP (Securities and Exchange Commission of Pakistan) etc. but these standards plays an important role in the increased economic revenues of Pakistan.