What are the challenges of IFRS in the preparation of financial statement?

Challenges of IFRS Adoption  The principal impeding factors in the adoption process of IFRS in Europe, America and the rest of the world are not necessarily technical but cultural issues, mental models, legal impediments, educational needs and political influences (Obazee, 2007). According to Rong- Ruey Duh (2006), the implementation challenges include: timely interpretation of standards, continuous amendment to IFRS, accounting   knowledge and expertise possessed by financial statement users, preparers, auditors and regulators, and managerial incentive (Ball, Robin & Wu 2000). The historical differences in accounting thought, context, ethos and practice in the broad divides: Anglo-Saxon, Continental Europe and  Southern American (Nobes,1983., Ball,1995) make harmonization and moving from one tradition  to another difficulty. 

IFRS(INTERNATIONAL FINANCIAL REPORTING STANDARD) came in place to help ameliorate the global financial system for a better understanding of financial and accounting principles through out the globe and some of its challenges involve in preparing its financial statement is the high cost involve in implementing IFRS, tax driven nature of national standard as it changes across nations,Lack of IFRS guidance implementation to give directives and the complex nature of IFRS

The main challenge is that IFRS does not consider local legal & fiscal law & policy which creates complexity in preparation of financial statement.

International Financial Reporting Standards (IFRS) is a set of accounting standards, developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements. More than 12,000 public companies in over 100 countries have adopted IFRS, including listed companies in the European Union. Other countries, including Canada and India, are expected to transition to IFRS in 2011. In many countries, private companies also use IFRS for financial reporting.

The main challenge is still to present clear and fair view, show more transparent data and point out proper interpretation of requirements especially during consolidation.

Thanks for invitation 

Challenges

1. Lack of technical skills 

2. Inadequate knowledge of professional accountants 

3 inadequate education and training of accounting personnel 

4 fun compliance with each IFRS by entities is a real challenge at the current moment.

Thank you for your kindness invitation.

I'm fully agree with all previous  and expert answers.

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In my personal evaluation i think the gap in understanding and applying the IFRS  is the biggest challenge

One & most important challenge  of IFRS in making Financial Statement is Local Government Law does not included in IFRS