The Economic Impact of International Financial Reporting Standards (IFRS) Implementation

Abstract

The objective of this study aims at reviewing a synthesis of the economic impact of the implementation of International Financial Reporting Standards (IFRS) in an attempt to provide directions for future research. There are significant evidences of adopting a high-quality set of harmonised accounting standards (i.e. IFRS) fosters trade and foreign direct investment (FDI), financial transparency, and comparability and reduces information asymmetries. From the extensive structured review of literature using the Scopus database tool, the study reviewed 108 articles, and in particular, the topic-related 41 articles were analysed. Seven journals contribute to 39% of the articles (The Accounting Review; European Accounting Review; International Journal of Accounting; Journal of Accounting Research; Revista Espanola de Financiacion y Contabilidad; Asian Review of Accounting; and International Journal of Economics and Management). However, most of the cited journals were Journal of Accounting Research, The Accounting Review, European Accounting Review, and International Journal of Accounting (Armstrong, Barth, Jagolinzer, & Riedl, 2010; Brüggemann, Hitz, & Sellhorn, 2013; Christensen, Lee, & Walker, 2007; Daske, Hail, Leuz, & Verdi, 2008, 2013). Most of the studies did not use any theory, and most of the articles utilised quantitative approach. The study calls for future research on the theoretical impactions on the economic impact of IFRS implementation in a country-specific study, cross-country study, and global study. Future studies should also focus on the policymaking agenda for the local and international standard setters.

Citation

Nurunnabi, M. (2021), "The Economic Impact of International Financial Reporting Standards (IFRS) Implementation", International Financial Reporting Standards Implementation: A Global Experience (Contributions to International Accounting), Emerald Publishing Limited, Leeds, pp. 127-197. https://doi.org/10.1108/978-1-80117-440-420211004