The Historical and Current Status of Global IFRS Adoption: Obstacles and Opportunities for Researchers

Song, Xiaoxiao; Trimble, Madeline

doi:10.1142/s1094406022500019

Cited by 25 publications

(13 citation statements)

References 42 publications

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“…The FDI inflows are expected to be positively related to IFRS adoption. For the IFRS adoption status, we follow two primary sources: (i) the International Accounting Standards Board (IASB) data website the and (ii) International Accounting Standards (IAS) from Deloitte's IAS Plus website based on Song and Trimble (2020). Their database provides the IFRS adoption status for 195 countries from 1990 to 2019.…”

Section: International Financial Reporting Standards (Ifrs)mentioning

confidence: 99%

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Inward FDI, IFRS Adoption and Institutional Quality: Insights from the MENA Countries

Cieślik

Hamza

2022

IJFS

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The adoption of International Financial Reporting Standards (IFRS) by 166 countries since 2004 has been a major achievement in the international standardization of accounting regulations. The present paper draws on the Eclectic Paradigm as the analytical framework to investigate the effects of IFRS adoption on foreign direct investment (FDI) inflows. The analysis is conducted based on panel data from 22 Middle Eastern and North African economies (MENA) between 1996 and 2019. The findings indicate that FDI inflows are positively associated with IFRS, and countries implementing the accounting standards receive a higher increase in FDI inflows. Furthermore, the results show that institutional quality plays an important role in attracting FDI. These results remain robust using lag and time-fixed effect estimation methods. The findings have several implications for policymakers.

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Section: International Financial Reporting Standards (Ifrs)mentioning

confidence: 99%

“…Funding: This research received no external funding.Institutional Review Board Statement: Not applicable.Informed Consent Statement: Not applicable.Data Availability Statement:Source: Own summary based onSong and Trimble (2020).…”

mentioning

confidence: 99%

Inward FDI, IFRS Adoption and Institutional Quality: Insights from the MENA Countries

Cieślik

Hamza

2022

IJFS

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“…The purpose of the IAS/IFRS is to create a common accounting language for companies operating within the European community to make easier and more transparent the comparison between the financial statements and the financial information of companies operating in different countries to benefit investors. Their application has been increasingly extended worldwide, and it is already trendy in many other countries and geographic areas outside the EU [40].…”

Section: Accounting Standards Regulations and Financial Disclosurementioning

confidence: 99%

Mandatory ESG Reporting and XBRL Taxonomies Combination: ESG Ratings and Income Statement, a Sustainable Value-Added Disclosure

2021

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Corporate financial statements address multiple stakeholders’ needs. International Financial Reporting Standards (IFRSs), among others, allow two different classifications, “by function of expense” and “by nature of expense”, for the statement of profit and loss and other comprehensive income for the period (from now on, also identified in short as “Income Statement”, or “IS”). XBRL standards ensure compliance and consistency in financial statements’ drafting and filing. XBRL taxonomies reflect the Income Statement IFRS disclosure requirement in the {310000} and {320000} codifications, respectively. Given the recent EU enhanced regulations that proposed extend mandatory ESG reporting to SMEs, this study aims to design and recommend an additional Income Statement to embed structured Environmental, Social, and Governance (ESG) disclosure. A restatement of the IS is organised following an adjusted Value-Added perspective to fit the purpose of sustainability disclosure. The above-mentioned Income Statement should be suitable and adaptable for entities of any size and operating in any industry. This goal can be achieved through customised input weighting. Therefore, this applied research can fill a current financial ESG disclosure gap, ensuring financial statements’ comparability and encouraging additional mandatory disclosures through standardisation. Two more items in the XBRL (IFRS-based) structure are suggested, leading to the introduction of one fully structured statement “{330000}—Statement of comprehensive income, profit or loss, by Added Value, ESG based” and a semi-structured “{814000}—Notes—ESG Ratings and Reporting” to better discuss and disclose the assumptions and results of the ESG Statement.

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“…Furthermore, compared with other Asian jurisdictions such as Singapore, Hong Kong, Philippines, and Korea, Taiwan is late in deciding the country-level IFRS adoption. Previous literature shows that the adoption timing would affect the costs and benefits of IFRS adoption, and hence the decision of IFRS adoption, and suggests future research to investigate the influence of IFRS adoption timing (Song and Trimble, 2022). Therefore, the IFRS early adoption in Taiwan also provides an opportunity for us to respond to this call.…”

Section: Introductionmentioning

confidence: 98%

“…Aggarwal (2009) for trade policy reluctance, Bye (2020) for security policy reluctance, Schiffino et al (2009) for biomedical policy reluctance, to add to the ongoing discussion about the rare voluntary IFRS adoption (Hsu and Reid, 2021b;Pownall and Wieczynska, 2018). Since some countries that were unwilling to adopt IFRS start making efforts to adopt IFRS recently, it is important to understand how companies make decisions of IFRS adoption (Song and Trimble, 2022).…”

Section: Introductionmentioning

confidence: 99%

Explaining IFRS reluctance with case study vignettes

Hsu

Reid

2023

JFRA

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Purpose This study aims to analyze why listed Taiwanese firms uniquely rejected the early adoption of International Financial Reporting Standards (IFRS) in 2012. It investigates the underlying decision-making processes behind this policy reluctance to further understand the continuous phenomenon of rare voluntary IFRS adoption. Design/methodology/approach It reports on fieldwork evidence obtained in situ by in-depth interviewing in Mandarin. It uses qualitative methods, complemented by quantitative cost-benefit metrics of IFRS adoption. It presents five diverse illustrative case-study vignettes, using a judgment sample based on expert opinion. Findings While the net-benefits of implementing IFRS varied across firms, this study’s unanimous finding was that no firms (in the sample or population) adopted IFRS early, despite stated intentions to the contrary. The key reasons for shunning early IFRS adoption were found to be frequent changes in regulations, insufficient benefits from adopting IFRS and the undermining of comparability across companies, compounded with scarce preparation time. Further, this study found that the Taiwanese accounting regulator’s reluctance toward IFRS adoption, partly caused by a long-standing US influence, contributed to this anomalous outcome. Practical implications This study recommends two critical policy changes: more realistic timelines and less frequent regulatory changes. Originality/value To the best of the authors’ knowledge, this is the first study to investigate the reasons behind the anomaly of no early adoption of IFRS in Taiwan, using new primary data and illustrative case studies. Its novelty lies in extending understanding beyond the existing quantitative literature on accounting standards, using new “thick” qualitative evidence on motives for such choices and decision-making processes, which have been neglected in previous work.

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The Historical and Current Status of Global IFRS Adoption: Obstacles and Opportunities for Researchers

Cited by 25 publications

References 42 publications

Inward FDI, IFRS Adoption and Institutional Quality: Insights from the MENA Countries

Inward FDI, IFRS Adoption and Institutional Quality: Insights from the MENA Countries

Mandatory ESG Reporting and XBRL Taxonomies Combination: ESG Ratings and Income Statement, a Sustainable Value-Added Disclosure

Explaining IFRS reluctance with case study vignettes

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