ACC80005 FINANCIAL ACCOUNTING THEORY Take-home Assessment Semester 1

QUESTION 5 (10 Marks)

...despite the rise of IFRS, its application has not necessarily been consistent around the world for a number of reasons...The inconsistent application of IFRS undermines its value as a single set of global standards. (Source: Ernst & Young (2012) ‘Consistency in IFRS – no borders, one language: dream or reality?’ IFRS Outlook
REQUIRED:
Ernst and Young state that the inconsistent application of IFRS undermines its value as a single set of global standards. Provide arguments in support of the position taken by Ernst and Young. (Maximum word limit: 500 words) (10 marks)