CHALLENGES AND PROSPECTS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IMPLEMENTATION IN EMERGING ECONOMIES

The adoption of International Financial Reporting Standards (IFRS) has become a significant step toward improving the quality and comparability of financial reporting worldwide. Many emerging economies have implemented IFRS with the expectation of enhancing transparency, attracting foreign investment, and integrating into global capital markets.

However, the effectiveness of IFRS adoption largely depends on institutional, regulatory, and professional environments. This paper aims to analyze the key challenges and prospects of IFRS implementation in emerging economies.

Using a qualitative review-based methodology, the study examines prior academic research, international reports, and practical experiences related to IFRS adoption. The findings indicate that while IFRS contributes to improved disclosure and comparability of financial statements, its practical implementation faces obstacles such as weak enforcement mechanisms, insufficient professional training, and limited institutional capacity.

The study concludes that IFRS adoption alone is not sufficient to ensure high-quality financial reporting and emphasizes the importance of institutional development and regulatory support.