Effect of International Financial Reporting Standards on Financial Reporting Quality

The adoption and implementation of International Financial Reporting Standards (IFRSs) in different countries of the world has become a contemporary issue particularly with regard to the quality of financial reports. The study reported that various studies used positive approach and some used positive pattern. Some Studies used either of primary or secondary sources of data. The study looked at the impact of the International Financial Reporting Standard (IFRS) on financial reporting comparability, reliability, and understandability. The current investigation was carried out as a desk review. The search was conducted using the term Quality of Financial Reporting, and the results were based on publications found in internet databases. Due to complex and competitive business contexts, it is necessary to comprehend the quality of financial reporting and to be aware of the influences. The study found that IFRS adoption are determined by comparing the parameters concerned between pre and post IFRS regimes in given jurisdictions. The review concept and empirical evidences of IFRS adoption and financial reporting quality from many countries reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though its impact has been reported to be positive in majority of studies.