The Effect of International Financial Reporting Standards (IFRS) Adoption on Financial Reporting Comparability

• Post by: airjournals
• June 9, 2024
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Onah, Kelvin Amobi & Edeh, Ijeoma Thelma

^aDepartment of Accountancy, University of Nigeria, Enugu Campus, Nigeria
^bDepartment of Accountancy, Enugu State University of Science and Technology Enugu, Nigeria

Abstract This study investigated the effect of International Financial Reporting Standards (IFRS) Adoption on Financial Reporting Comparability among publicly listed companies across different countries. The specific objective are to examine the impact of IFRS adoption on the level of financial reporting comparability among publicly listed companies across different countries, investigate the factors that influence the degree of financial reporting comparability following the adoption of IFRS, such as differences in enforcement mechanisms, cultural/ institutional factors and industry-specific practices and evaluate the benefits and challenges associated with IFRS adoption in terms of enhancing the comparability, transparency and reliability of financial information for cross-border investment and decision-making.  The research utilized a quantitative methodology. Primary data collection involved distributing surveys and questionnaires to accounting professionals, regulators, investors, and senior management of IFRS-adopting companies. Secondary data comprised financial statements, academic research, and industry reports. Various statistical techniques, including descriptive and regression analyses, were employed to assess the impact of IFRS adoption on financial reporting comparability. The findings reveal a significant positive association between IFRS adoption and financial reporting comparability, indicating that the adoption of IFRS enhances the consistency and transparency of financial reporting practices globally. These results underscore the importance of adopting global accounting standards in promoting cross-border investment, decision-making, and capital allocation. The study concludes with recommendations for continued emphasis on IFRS adoption and implementation, enhanced cross-border collaboration and harmonization, and investment in technology and data analytics to further strengthen the impact of IFRS adoption on financial reporting comparability. Keywords IFRS Adoption; Financial Reporting; Comparability; Enforcement Mechanisms; Global Accounting Standards Citation Onah, K. A. & Edeh, I. T. (2024). The Effect of International Financial Reporting Standards (IFRS) Adoption on Financial Reporting Comparability. International Journal of Advanced Finance and Accounting, 5(1), 48-61 https://doi.org/10.5281/zenodo.11530006