International Financial Reporting Standards are a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. This reporting is issued by the International Accounting Standards Board, and they specify exactly how accountants must maintain and report their accounts. This is used because the accounting language is understood no matter what company you are or where you are located, it is universal. Mexico, Brazil and Argentina were all using a different method called the GAAP which was recently abandoned to join the IFRS method. Switching to this method was beneficial for each of these countries based on their individual needs. Despite all of the planning to carefully switch over there were conversion issues due to the length of time the GAAP methods were used they had to make sure they were following all of the correct policies and not breaking any laws. Also, more challenges they ran into were for reporting purposes while the countries were converging, the tax authorities were determining taxable incomes based on the GAAP. The only way to report with any other methods the tax authorities must approve the method. Until then the countries had to report in multiple ways which is almost like double recordings. These countries were beginning to use IFRS practices because the standards were a lot higher and detailed. The IFRS practices would not be affective if they were not translated properly to each country in their respective languages that translate exactly to IFRS.

The major points of this article are seemingly to be that these countries wanted to adopt a method that had seemed to be working for everyone else. They felt that if this was adopted this could help their countries do more business internationally. This helps with reporting with a universal method so that the data can be read no matter what country you are in or what language that you speak, it can be interpreted by anyone. Each country had a certain way of doing things that did not translate to other countries without having it translated and even at that point there was confusion amongst the reports because validation of certain reports were questioned. With this knowledge and as a future business owner I will know that when in developments with working with other countries, the reporting structures should be the same so that there is not any confusion when publishing reports. When everyone is using the same method, it can be translated the same to avoid any errors or breaking of any laws

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