Differentiate between Adoption and Convergence as related to International Financial Reporting Standards
What will be an ideal response?
Adoption means abandoning the country's current financial reporting standards and replacing them with International Financial Reporting Standards. That is, the original country has chosen to fully adopt the standards exactly as written and promulgated by the International Accounting Standards Board.
Convergence means changing the country's existing standards so that they will produce financial reports equivalent to International Financial Reporting Standards requirements. That is, the original country has chosen to adapt its current standards to comply with International Financial Reporting Standards requirements.
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Indicate whether the statement is true or false