The Impact of IFRS Adoption: A Literature Review

Globalization of capital markets has increased the need for harmonized accounting standards all over the world. Regulators believe that International Financial Reporting Standards (IFRS) developed by International Accounting Standards Board (IASB) provide harmonized financial statements. Although, a large number of empirical studies examined the aftermath of IFRS adoption, these studies were limited in scope. This paper reviews the extant literature, which deals with harmonization of accounting standards and presents the overall consequences of IFRS adoption. The paper then provides some future research options.