IFRS: Markets, Practice, and Politics

Foundations and Trends® in Accounting: Vol. 15: No. 1–2, pp 1-262. http://dx.doi.org/10.1561/1400000055

223 Pages Posted: 23 May 2021 Last revised: 26 Jul 2021

See all articles by Kirstin Becker

Kirstin Becker

Copenhagen Business School

Jannis Bischof

University of Mannheim - Accounting and Taxation

Holger Daske

University of Mannheim

Date Written: May 18, 2021


This monograph reviews the academic literature on market outcomes, reporting practices and the political economy behind the global use of International Financial Reporting Standards (IFRS). We start with a conceptual discussion of expected benefits and costs of an international harmonization of accounting regulation and explain why predictions on possible outcomes are ambiguous. Our first main section discusses the characteristics of an “ideal” IFRS experiment that would allow to draw causal inferences on the effects of IFRS adoption. We offer a comprehensive overview of research on the impact of IFRS on capital markets, particularly around firsttime adoption and during the global financial crisis. In our second main section, we describe current IFRS reporting practices, including digital reporting (XBRL), and benchmark the availability, accessibility, and processing of IFRS financial information against the information environment in the United States. We complement this discussion by evidence on the use of IFRS reporting choices such as the different fair value options. The third main section provides information about important institutional features of IFRS standard setting and how political powers affect decisions on IFRS adoption, standard setting, and enforcement. The monograph concludes with an assessment of the impact of IFRS research and outlines emerging trends that provide opportunities for future research. Overall, this monograph offers a summary of research findings and methods that are relevant for the analysis of future regulatory innovations, such as the international standardization of sustainability (or ESG) reporting.

Keywords: IFRS, international accounting, disclosure, compliance, capital markets, real effects, XBRL, digitalization, fair value, financial crisis, politics, research impact, literature review

JEL Classification: M41, M48, G14, G39

Suggested Citation

Becker, Kirstin and Bischof, Jannis and Daske, Holger, IFRS: Markets, Practice, and Politics (May 18, 2021). Foundations and Trends® in Accounting: Vol. 15: No. 1–2, pp 1-262. http://dx.doi.org/10.1561/1400000055, Available at SSRN: https://ssrn.com/abstract=3848580

Kirstin Becker

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000

Jannis Bischof

University of Mannheim - Accounting and Taxation ( email )

Mannheim, 68131

Holger Daske (Contact Author)

University of Mannheim ( email )

Mannheim, 68131

HOME PAGE: http://https://www.bwl.uni-mannheim.de/en/daske/

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