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Ifrs Accounting Standards

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In those countries that adopted these accounting standards mandatorily, there was a marked decrease in both the accounting and financial forecast errors. The results indicate that it is beneficial to apply these accounting standards as they lead to reduction in the errors associated with accounting and that explains its significance in this study.

Carmona, S., & Trombetta, M. (2008). On the global acceptance of IAS/IFRS accounting standards: The logic and implications of the principles-based system. Journal of Accounting and Public Policy, 27(6), 455-461. The study recognizes that there exists a profound difference in the application the different accounting and reporting standard citing that despite the growing increase and demand for the …show more content…

(2008). Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption. Journal of accounting and public policy, 27(6), 480-494.
The research paper mainly analyzed the effects associated with the mandatory application of the IFRS standards on the both the management and quality of the earnings. The research researched the effects that are associated with the application of the IFRS standards in regards to improving the reporting standards and the determining the overall incomes of the countries and organizational settings that adopt these accounting techniques.
In their study, they laid special emphasis on the countries that first adopted these accounting standards, for instance, France, UK and Australia. The results indicate the relative pervasiveness of the management earnings did not show a marked decline as a result of the application of the IFRS standards. In some countries like France, there was even a marked increase the earnings as a result of the application of IFRS standards. These results indicate that sharing accounting knowledge and rules may not entail a sufficient condition for creating common and understandable business and accounting knowledge but rather the institutionalized national …show more content…

In their study, they took a sample of 102 different countries that are not part of the European Union in a bid to understand how the application of these standards would be beneficial and their relative significance on the accounting procedures.
The results of their findings indicate that there is powerful evidence to suggest that the most economically powerful countries have got a higher likelihood of adopting the IFRS accounting standards. The major reason for this scenario is that these countries are not willing to give up their standard setting authorities to an international body since IFRS would be under the authority of an international body. The likelihood of adopting these accounting methods increases just after they have been adopted but go on decreasing in quality for government controlled institutions.
In their study, the researchers did not find any evidence to suggest that the use of IFRS leads to a reduction in the costs of information in the globalized economies. They discovered that countries would be more likely to adopt the IFRS accounting standards only if their trade partner also adopt such standards. The resource outlines the significance adoption of the IFRS in different countries and the major incentives to their

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