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IFRS: Markets, Practice, and Politics

Author

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  • Kirstin Becker
  • Jannis Bischof
  • Holger Daske

Abstract

This monograph reviews the academic literature on market outcomes, reporting practices and the political economy behind the global use of International Financial Reporting Standards (IFRS). We start with a conceptual discussion of expected benefits and costs of an international harmonization of accounting regulation and explain why predictions on possible outcomes are ambiguous. Section 3 discusses the characteristics of an “ideal†IFRS experiment that would allow to draw causal inferences on the effects of IFRS adoption. We offer a comprehensive overview of research on the impact of IFRS on capital markets, particularly around first-time adoption and during the global financial crisis. In Section 4, we describe current IFRS reporting practices, including digital reporting (XBRL), and benchmark the availability, accessibility, and processing of IFRS financial information against the information environment in the United States. We complement this discussion by evidence on the use of IFRS reporting choices such as the different fair value options. Section 5 provides information about important institutional features of IFRS standard setting and how political powers affect decisions on IFRS adoption, standard setting, and enforcement. The monograph concludes with an assessment of the impact of IFRS research and outlines emerging trends that provide opportunities for future research. Overall, this monograph offers a summary of research findings and methods that are relevant for the analysis of future regulatory innovations, such as the international standardization of sustainability (or ESG) reporting.

Suggested Citation

  • Kirstin Becker & Jannis Bischof & Holger Daske, 2021. "IFRS: Markets, Practice, and Politics," Foundations and Trends(R) in Accounting, now publishers, vol. 15(1-2), pages 1-262, July.
    • Handle: RePEc:now:fntacc:1400000055
    DOI: 10.1561/1400000055
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    References listed on IDEAS

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    1. Stephen A. Zeff, 2019. "A Personal View of the Evolution of the Accounting Professoriate," Accounting Perspectives, John Wiley & Sons, vol. 18(3), pages 159-185, September.
    2. Zhang, Ying & Andrew, Jane, 2014. "Financialisation and the Conceptual Framework," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 17-26.
    3. Stephen A. Zeff & Christopher W. Nobes, 2010. "Commentary: Has Australia (or Any Other Jurisdiction) ‘Adopted’ IFRS?," Australian Accounting Review, CPA Australia, vol. 20(2), pages 178-184, June.
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    Citations

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    Cited by:

    1. Wolfgang Breuer & Jannis Bischof & Christian Hofmann & Jochen Hundsdoerfer & Hans-Ulrich Küpper & Marko Sarstedt & Philipp Schreck & Tim Weitzel & Peter Witt, 2023. "Recent developments in Business Economics," Journal of Business Economics, Springer, vol. 93(6), pages 989-1013, August.
    2. Jannis Bischof & Ulf Brüggemann & Holger Daske, 2023. "Asset Reclassifications and Bank Recapitalization During the Financial Crisis," Management Science, INFORMS, vol. 69(1), pages 75-100, January.
    3. Cascino, Stefano & Daske, Holger & Defond, Mark & Florou, Annita & Gassen, Joachim & Hung, Mingyi, 2023. "Reflections on the 20-year anniversary of worldwide IFRS adoption," LSE Research Online Documents on Economics 120205, London School of Economics and Political Science, LSE Library.
    4. Jannis Bischof & Andreas Dutzi & Marius Gros, 2022. "Sustainability reporting and risk governance," Journal of Business Economics, Springer, vol. 92(3), pages 349-353, April.
    5. Boyle, Erik S., 2024. "How do auditors’ use of industry norms differentially impact management evaluations of audit quality under principles-based and rules-based accounting standards?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 54(C).

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    More about this item

    Keywords

    Disclosure; Financial Reporting; Financial statement analysis and equity valuation;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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