The IASB Referential Impact on Decision Making Process and Risk Management

As a development of the global economy, companies that are operating globally have become a powerful force behind efforts to achieve uniformity in financial reporting. The objective of this research is to highlight the necessity of adopting international standards so that the financial statements can be successfully used in decision-making processes and risk management, through their benefits as asymmetry reduction and increase information comparability. Focus on decision-making processes and risk management leads to concerns over the predictive value, as opposed to retrospective value, in the financial statements.