A study by Peter Wong, the head of Hong Kong's association of corporate treasurers (HKACT), has identified six primary challenges for the convergence of international financial reporting standards (IFRSs). The study, commissioned by the International Federation of Accountants, concludes the main challenges are:
The need to develop standards that are capable of translation and to establish processes that facilitate high quality translations of the standard in order to more effectively accommodate the needs of non-native English speakers;
Complexity and structure of the standards;
Frequency, volume and complexity of changes to the standards;
Challenges for small and medium sized entities and accounting firms;
The potential knowledge shortfall among those responsible for implementing the standards, and;
Lack of understanding of the meaning of ?international convergence?.
Wong, who is also a former member of the IFAC board and former president of the Hong Kong Institute of Certified Public Accountants, comments: ?There is no question that globally consistent and uniform financial systems provide cost-efficiencies to business and greater safeguards to the public. ?It is for this reason that we need to focus on creating globally consistent standards.