between German accounting standard and US-GAAP.
They had to prepare dual F/S.
∙ German government allowed its national companies to use IFRS and US-GAAP
to solve these problems.
∙ Germany stated that they needed a single integrated accounting standard for
transparent and comparable financial reporting. As a result, they adopted IFRS.
of Enron in the market was huge, and the many
companies, which were involved with derivatives,
could not but suffer big damage.
② Loss of trust in the market can cause immediate stock prices fall and business failure should keep in mind.
Transparency management, responsible business and the foundation of confidence by establishment of internal control system became T
of its performance. According to McLean and Elkid in their book 『The Smartest Guys in the Room』, "The Enron scandal grew out of a steady accumulation of habits and values and actions that began years before and finally spiraled out of control." From late 1997 until its collapse, the primary motivations for Enron’s accounting and financial transactions seem to have been to keep reported in
of Confidence : The key benefit will be a common accounting system
that is perceived as stable, transparent, and fair to investors across the world,
whether local or foreign.
●Risk Evaluation : IFRS will eliminate barriers to cross-border listings and will
be beneficial for investors who generally ascribe a risk premium if the
underlying financial information is not prepared in acco