The impact on costs and benefit varies from country to country depending upon the characteristics, nature and culture of the country. United Kingdom adopted the new accounting plan which was announced by UK Accounting Standards Board (ASB) leaving behind their old GAAP. Altering to IFRS was the biggest challenge to corporate financial reporting. However the implementation was necessary as this would reduce the number of financial reporting standards to a single accounting system; a single standard would enhance a company’s control on financial reporting and will also able consolidation of people, systems, and processes. This would also improve the quality of financial information and also ensures timely loss recognition.
The biggest problem that UK faced was in terms of the time required for changeover and certain standards which proved problematic in this process. As compared to the earlier adopted GAAP by ASB the IFRS
Had more number of disclosures.
The cost associated with publication and production of information was high.
Some standards posed the greatest challenge for prepares and users to implement.