The recent adoption of IFRS as the required fi nancial reporting standard by the EU and other countries has advanced the goal of global convergence. Nevertheless, there are still signifi cant differences in fi nancial reporting in the global capital markets. Arguably, the most critical are the differences that exist between IFRS and U.S. GAAP. After the EU adoption of IFRS in 2005, these two reporting standards account for a signifi cant number of the world ’ s listed companies
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