The introduction/overview of the first three weeks of the module Week 1 provides the background for the financial reporting module and refreshes the basic accounting concepts in the Finance and Accounting for Managers module. It provides detailed differences between cash flow and accrual accounting and a critical analysis of the preferred methods, as well as examining standard-setting processes and challenges. Week 2 follows Week 1 in that it focuses extensively on the economist approach to income and asset valuation, taking into account changes in the price level and income recognition models. Examines profit calculation from both an accounting and economic perspective and the relationship between the two. Week 3 was a follow-up on the Weeks 1 and 2 studies; examines the traditional and modern way of interpreting financial statements and evaluating the financial health of an organization. It also presents the challenges and benefits of financial reporting on the Internet. These 3-week studies combined captured important areas of financial reporting that are of practical use in the modern accounting environment. This article then builds on these to examine Larson & Street's (2004) article on the progress and obstacles identified by the survey of major accounting firms during the process of convergence of International Financial Reporting Standards (IFRS) into a Expanding Europe. Overview of (Larson & Street, 2004) articleIn 2002, the European Union (EU) requires all listed companies of its members to adopt and prepare consolidated accounts using International Financial Accounting Standards (IFRS) starting from 2005. This is a major event for the International Accounting Standard Board (IASB) which strengthened their status and legitimacy as a standard setting body. Larson & Stre...... middle of paper ......& Bhutani,2012), etc., Jermakowicz & Gornik-Tomaszewski (2006,p.192) observed that “there is a general consensus that The transition to IFRS is a costly, complex and burdensome process". on 1 January 2014. Many challenges have been faced during the implementation process. Madawaki (2012, p.156) argued that these challenges include knowledge gaps, poor enforcement and compliance system, tax system and implications, legal system and poor level of awareness Providing a solution to these challenges which are evidence in all jurisdictions that have implemented IFRS, stakeholder cooperation is key to the solution of. all obstacles.