Explain the role of International Financial ReportingStandard (IFRS) in cross border tax avoidance based on literature review.

Key objectives:

The limitations of IFRS to limit tax avoidance practice even though it is regarded as a high quality reporting standard. Need to be sustained by relevant examples and limitations in some of the accounting standards.

How earning management is possible when multinationals firms consolidate their group accounts I.e subsidiaries under IFRS to US Gaap and vice versa. Provide practical examples shows difference in accounting standards between Us and IFRS gaap where earning management is possible when accounts are consolidated.