The Effects of Mandatory IFRS Adoption in the EU
The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research reviews academic research into the effects of mandatory adoption of IFRS in the EU and summarises what it tells us about the costs and benefits of adoption.
The report finds that there is evidence of benefits following IFRS adoption in relation to financial reporting transparency and comparability, the cost of capital, market liquidity, corporate investment efficiency and cross-border capital flows.
But the evidence on some of these matters is disputed and it is unclear how far the benefits identified are attributable to the adoption of IFRS or to other concurrent institutional changes, particularly in enforcement.
What is clear is that the benefits found are uneven, varying with the institutions and incentives that apply for different companies in different countries.
Comments on the report are welcome and should be sent to email@example.com. We plan to issue a revised and final version of the report in 2015.
A four-page briefing paper based on the report is also available:
For further information on The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research, please email firstname.lastname@example.org.