2.

The challenges of implementing the IFRS worldwide will give complications to

other business firms. IFRS strongly follows timely disclosure and fast recognition
of losses that the timeliness of fair value is very important to create trust in the
market. On the other hand, using the IFRS brand would cause a controversy
among the countries’ political and economic views, as the other countries use
different set of accounting standards. Each society has its own law and tradition
which guided the use of local accounting practices, so if their accounting practices
differs from the IFR standards it would be difficult for them to follow. For the
small firms it would be costly converting the standards into IFRS or having two
accounting standards at the same time.