First, rigidity in the accounting profession has been linked to stringent accounting principles. Notably, rigidity continues to characterize the accounting profession due to the adoption of common accepted accounting policies and standards. This highly limits creativity and innovation in the accounting profession. In addition, most of the firms especially those operating at local levels find it cost ineffective to embrace most of the accounting principles. Arguably, GAAPs the interests of large organizations at the expense of SMEs. This explains the recent trends towards the adoption of standards relating to such …show more content…
However, over the recent past, heated debates have sprung to forester the shift toward use of international standards. The proponents of this move suggest that, owing to the rampant trend of global marketing and international business transactions, there is a need to embrace standards that govern the presentation of financials internationally. The benefits that accrue to firms from adopting international financial reporting standards include; increased consistency and hence comparability of financial statements and reports. Common financial reporting standards help in ensuring uniformity in format and elements contained in financial statements.