The Adoption of IFRS Standards Requires the Use of Fair

question 39

Essay

The adoption of IFRS standards requires the use of fair value in recognition and measurement of numerous items in the financial report,stimulating a debate that IFRS standards increases volatility in earnings.Using the opportunistic view,discuss the concerns of reporting entities with the IFRS standards.

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Definitions:

Capital Stock

The general term applied to the shares of a corporation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock.

Capital Stock

The total amount of shares that a corporation is authorized to issue, as represented in its financial statements.

Commission Charges

Fees paid for services, usually a percentage of the transaction made or handled by a service provider.