Macroeconomic Determinants of International Financial Reporting Standards (IFRS) Adoption: Evidence from the Middle East North Africa (MENA) Region

Revista Internacional Administracion & Finanzas, v. 9 (1) p. 39-48

10 Pages Posted: 16 Nov 2017

See all articles by Allan Graham

Allan Graham

American University of Sharjah

Anup Menon Nandialath

Zayed University

Debra Skaradzinski

Zayed University

Elzotbek Rustambekov

Bryant University

Date Written: 2017

Abstract

The adoption of International Financial Reporting Standards (IFRS) as a country’s Generally Accepted Accounting Principles (GAAP) has accelerated in the last 5 years with approximately 120 sovereign governments designating IFRS as the required financial reporting framework for at least some companies in the country. The American Institute of Certified Public Accountants (AICPA) reports that of these, about 90 countries have adopted it fully for all businesses, large and small. In an annual update, Pricewaterhouse Coopers (PwC) lists 147 countries that have some relationship with IFRS (the U.S. is listed, for instance, as it allows foreign companies with a capital market presence to use IFRS instead of converting their results to U.S. GAAP). Yet many of the world’s 201 recognized countries have resisted fully adopting IFRS, particularly in the Middle East North Africa (MENA) region of the world. This begs the question: what are the perceived benefits of adopting IFRS at the country level?

Keywords: International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP), Middle East North Africa (MENA), Macroeconomics, Capital Flows, Disclosure

JEL Classification: M4, O53

Suggested Citation

Graham, Allan and Nandialath, Anup Menon and Skaradzinski, Debra and Rustambekov, Elzotbek, Macroeconomic Determinants of International Financial Reporting Standards (IFRS) Adoption: Evidence from the Middle East North Africa (MENA) Region (2017). Revista Internacional Administracion & Finanzas, v. 9 (1) p. 39-48, Available at SSRN: https://ssrn.com/abstract=3025011

Allan Graham (Contact Author)

American University of Sharjah ( email )

P.O. Box 26666
Sharjah
United Arab Emirates

Anup Menon Nandialath

Zayed University ( email )

P.O. Box 19282
Dubai
United Arab Emirates

Debra Skaradzinski

Zayed University ( email )

P.O. Box 4783
Abu Dhabi
United Arab Emirates

Elzotbek Rustambekov

Bryant University ( email )

1150 Douglas Pike
Smithfield, RI 02917-1284
United States

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