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International Financial Reporting Standards: what are the benefits?

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  • Philip Brown

Abstract

When countries have announced plans to adopt IFRS in lieu of the standards that had applied previously, they have referred to a number of benefits, mostly to do with equity markets. So it is not surprising that academics have looked to equity markets to assess the extent to which benefits may have materialised. The evidence they have gathered can fairly be characterised as mixed, partly because of differences in samples and the use of a wide range of proxies for the same underlying but unobservable idea. Nonetheless, it seems relatively clear that the shift to IFRS has had many consequences both for the valuation of equities and for equity markets more generally. Although there will always be winners and losers from changes in accounting standards, if only because of their distributive effects, undoubtedly some consequences are regarded by companies and investors as, on balance, beneficial. However, the story is far from complete. Ample scope remains to expand the range of possible benefits that are investigated and to improve, substantially, the methods used to seek them out.

Suggested Citation

  • Philip Brown, 2011. "International Financial Reporting Standards: what are the benefits?," Accounting and Business Research, Taylor & Francis Journals, vol. 41(3), pages 269-285, August.
  • Handle: RePEc:taf:acctbr:v:41:y:2011:i:3:p:269-285 DOI: 10.1080/00014788.2011.569054
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    References listed on IDEAS

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    Cited by:

    1. Philip Brown, 2013. "Some Observations on Research on the Benefits to Nations of Adopting IFRS," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 3, pages 1-19, December.
    2. Kozuharov, Sasho & Ristovska, Natasha & Blazeska, Daliborka, 2015. "International Standards For Financial Reporting: Harmonization In Macedonia," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 6(2), pages 233-240.
    3. Palea, Vera, 2013. "IAS/IFRS and Financial Reporting Quality: Lessons from the European Experience," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201330, University of Turin.
    4. Ahmed, Kamran & Chalmers, Keryn & Khlif, Hichem, 2013. "A Meta-analysis of IFRS Adoption Effects," The International Journal of Accounting, Elsevier, vol. 48(2), pages 173-217.
    5. Juana Aledo Martínez & Diego Abellán Martínez & Henghsiu Lin, 2014. "The Value Relevance of Accounting Numbers Under International Financial Reporting Standards," Australian Accounting Review, CPA Australia, vol. 24(3), pages 237-254, September.
    6. repec:kap:ejlwec:v:44:y:2017:i:3:d:10.1007_s10657-014-9460-1 is not listed on IDEAS
    7. Roland Königsgruber, 2013. "Expertise-based lobbying and accounting regulation," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 1009-1025, November.
    8. Humayun Kabir & Fawzi Laswad, 2015. "The Impact of Improvements in Institutional Oversight on IFRS Accrual Quality in Europe," Australian Accounting Review, CPA Australia, vol. 25(4), pages 428-444, December.
    9. Bozos, Konstantinos & Ratnaike, Yasanji C. & Alsharairi, Malek, 2014. "How has the international harmonization of financial reporting standards affected merger premiums within the European Union?," International Review of Financial Analysis, Elsevier, vol. 31(C), pages 48-60.
    10. repec:eee:spacre:v:17:y:2014:i:2:p:143-152 is not listed on IDEAS
    11. Chipurenko, Elena & Lisovskaya, Irina & Trapeznikova, Natalia, 2017. "Reforming the Financial Accounting Regulation and Reporting System, the Order of Integration into the Economic and Educational Environment," Working Papers 051720, Russian Presidential Academy of National Economy and Public Administration.
    12. S. Susela Devi & R. Helen Samujh, 2015. "The Political Economy of Convergence: The Case of IFRS for SMEs," Australian Accounting Review, CPA Australia, vol. 25(2), pages 124-138, June.
    13. Anna Samsonova-Taddei, 2013. "Social Relations and the Differential Local Impact of Global Standards: The Case of International Standards on Auditing," Abacus, Accounting Foundation, University of Sydney, vol. 49(4), pages 506-538, December.

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