Adoption of International Financial Reporting Standard: A Systematic Review

A set of basic, standardised, and understandable accounting rules that are followed by organisations worldwide is referred to as “International Financial Reporting Standards” (IFRS). Companies throughout the world are starting to use it more and more as a tool to standardise their financial reporting. Foreign firms are finding new opportunities in nations that are rapidly becoming more industrialised and globally integrated. Therefore, it is imperative to have a worldwide accounting system that can standardise and guarantee the accuracy of financial data. In light of IFRS’s (International Financial Reporting Standard) recent worldwide evolution, this working paper aims to assess its current state. In addition, this study incorporates a model that combines IFRS with the concepts of RFIR, transparency, comparability, and FDI, drawing on the existing literature in this area. The objective is to develop a scale for evaluating the calibre of financial data. In light of the previously indicated context, this review paper seeks to illustrate many aspects of the global implementation of the International Financial Reporting Standard (IFRS) as well as its benefits and drawbacks.