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Explain several implications of IFRS on financial reporting by health care organizations.

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User Techarch
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1 Answer

2 votes

Answer:

Step-by-step explanation:

Organization would have more freedom to adjust the value of the assets to fair value as compared to the restriction of just recording the assets at the cost at which they are brought. This could change the way external parties value/view organization. So, the way analysts view the organization would change.

With introduction of IFRS these changes could occur:

1. adjustment for the impact of inflation to account for loss of purchasing power on the financial reporting.

2. Research and development costs could be expensed as well as can be treated like assets under certain circumstances.

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User Asclepius
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