Diverse Perspectives and Unified Standards: A Review of the Cultural Landscape of IFRS Implementation

This review explores the impact of cultural diversities and sociopolitical implications of adopting International Financial Reporting Standards across the world. A comprehensive review was conducted on 42 Scopus research articles from the year 2006 when the nations started the widespread execution of international accounting standards. The inclusion criteria employed confine to the keywords IFRS, cultural diversities, and regulatory mechanisms. It was found that the reason for the varied usage of international accounting procedures in the 168 countries as per ifrs.org where international standards are used is due to cultural, economic, and socio-political factors. Examining the impact of cultural variety on adopting IFRS, it is found that larger nations have lower adoption rates because of long-standing financial conventions. Regional differences in the application demonstrate broad acceptance with distinct regulatory strategies. Government intervention and regulatory frameworks are important, and coercive effects are often observed following political shifts. Exploring the potential cultural impacts on newly devised IFRS implementation frameworks within SMEs, banks, and insurance organizations emerges as a promising research avenue for future research.