IFRS Plan in Saudi Arabia (Essay Sample)

IFRS IN KSA
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Introduction
Globalization has lead to the importance of converging the world's economy. The efforts to harmonize the accounting standards used in many financial markets have intensified. International Accounting Standards (IASB) has been at the forefront to implement these changes CITATION DRM15 \l 1033 (Nurunnabi, 2015). The IFRS have been adopted both the developed and underdeveloped economies. In the year 2009, Saudi Arabia became part of the Group of Twenty Finance Ministers and Central Bank Governance (G20) CITATION DRM15 \l 1033 (Nurunnabi, 2015). This has lead to the mandatory adoption of IFRS in Saudi. The following is a research plan on the adoption of IFRS in Saudi and its implications
IFRS Plan in Saudi Arabia
In the present, the Saudi Arabian Monetary Authority (SMA) requires all the banks and insurance companies to use the IFRS CITATION DRM15 \l 1033 (Nurunnabi, 2015). The listed and unlisted companies follow the Saudi Organization for Certified Accountants (SOCPA) accounting standards CITATION DRM15 \l 1033 (Nurunnabi, 2015). In July, 2013 the plan to converge IFRS and SCOPA was approved CITATION DRM15 \l 1033 (Nurunnabi, 2015). Under this scheme, all the listed companies would start using it by 1st January 2017.The other entities would be required to implement them by 1st January 2018 CITATION DRM15 \l 1033 (Nurunnabi, 2015).The project for transition began in 2012 and is expected to come into completion by the year 2017 CITATION DRM15 \l 1033 (Nurunnabi, 2015).
The objectives of this research are:
* To investigate the changes that will happen to the current standards
* To examine how the IFRS will be changed to converge wit...