What are some of the risks for a company converting from GAAP to IFRS?

Question

Quizplus · Accepted Answer

All of the listed items are risks that a company should be aware of when converting from GAAP to IFRS. Misstatement of financial information can occur due to differences in accounting standards and complex processes. Fraud could also not be detected with the lack of familiarity with the new reporting rules. Ineffective communication of the impact of the change to investors and creditors can lead to confusion and uncertainty in the business environment. Management's inability to certify the effectiveness of controls over financial reporting can also be a potential risk after the conversion.

What Are Some of the Risks for a Company Converting