IFRS 1 First Time Adoption Essay

I wrote a paper on the following: why adoption of IFRS 1 was met with controversy and how a company, a 2010 first-time adopter, presented its statement of financial position and what alternatives were available. I need an international student's/ person perspective on why adoption of IFRS has been met with controversy. The outline is below. Any perspective would be greatly helpful!!! Q1.why adoption of IFRS 1 was met with controversy IFRS using fair value accounting to value most of the items of the financial statements. The use of fair value accounting can bring a lot of volatility and subjectivity to financial statement. It also involves a lot of work at arriving at fair value and valuation experts may be used. Changes in tax liability - Federal, State and Local Taxes Implementation Costs including hardware changes, software, training and education If costs of adopting IFRS was greater than its benefits The requirement to perform a full impairment review each time a subsidiary receives a dividend from a subsidiary, associate or jointly controlled entity might add a significant amount of time to the preparation of financial statements on an on-going basis and could be a significant cost in terms of both preparation and external audit Revenue recognition changes Under USGAAP revenue is recognized when it is realized, realizable Legal and Regulatory changes Debates in the U.S. focused on restating the balance sheet accounts and earnings without using LIFO inventory could result in lower earnings and greater debt on the balance sheet. Effect on firm value from such extensive retrospective application Political Convergence with IFRS is already a contentious issue in the US Q.2 how Luxottica Group S.p.A.[IMG] , a 2010 first-time adopter, presented its statement of financial position and what alternatives were available Exceptions: Business Combinations - applied IFRS 3 retrospectively, did not take this exception Property, plant and equipment, investment properties, intangibles Employee benefits (F-87) - Actuarial gains and losses are recognized in OCI and are not amortized. Exception: unrecognized gains and losses at date of transition need not be recognized Cumulative translation adjustment Decommissioning liabilities Transition date for subsidiaries, associates and joint ventures Compound instruments Designation of financial assets and financial liabilities Fair value measurement of financial instruments at initial recognition Comparatives for financial instruments Share-based payments Insurance contracts Exploration costs