Critically explore how IFRS has been so widely adopted despite the lack of compelling evidence regarding an improvement in accounting information quality through its use. Conclude what lessons this offers for the adoption of other accounting reforms in the future.

Chapter: Harmonisation of Accounting Standards

“What makes International Financial Reporting Standards (IFRS) widely accepted as de facto global accounting standards? Empirical evidence does not provide compelling evidence that IFRS meet the criteria of improving information and comparability, reducing the cost of capital, or leading to a better allocation of resources in capital markets (Brüggemann et al., 2013, Cascino and Gassen, 2015, ICAEW, 2015).

Yet the standards are widely presented as a rational, exhaustive, and internally consistent technology to account for financial transactions. IFRS are assumed to offer an effective basis for improving the information provided by firms to market participants and other interested parties, enhancing the efficiency of capital markets (Barth, 2013, Horton et al., 2013). These depictions prevail, despite concerns stretching back over several decades as to whether it is feasible to devise conceptual frameworks and implement standards that meet the criteria mentioned above (e.g., Macve, 1997, Zeff, 1999)”

Matzari,E;; Omiros G; (2019) Ideological hegemony and consent to IFRS: Insights from practitioners in Greece Critical Perspectives on Accounting Volume 59, March 2019, Pages 70- 93

1500 words (proper evaluation if possible, essay type)

Answer rating: 100% (QA)

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