Title: A Review of the Impact of International Financial Reporting Standards (IFRS) on Global Accounting Practices.
Authors: Damilola Christiana Ayodeji
Volume: 9
Issue: 4
Pages: 114-123
Publication Date: 2025/04/28
Abstract:
The implementation of International Financial Reporting Standards (IFRS) has ushered in a transformative era in global accounting practices. This Review provides an overview of the comprehensive review, delving into the profound impact of IFRS on accounting practices worldwide. The analysis encompasses the harmonization of financial reporting, enhanced comparability across borders, and the challenges and benefits associated with the adoption of a common set of accounting standards. IFRS, established by the International Accounting Standards Board (IASB), seeks to harmonize accounting practices on a global scale, fostering consistency and comparability in financial reporting. The review explores how this standardized framework has transcended national boundaries, facilitating a common language of financial communication that transcends geographic and cultural differences. The harmonization achieved through IFRS is examined in the context of the global business landscape, elucidating how multinational corporations benefit from streamlined financial reporting processes. The study delves into the challenges faced by organizations in adopting and adapting to IFRS, recognizing the complexities associated with aligning diverse accounting practices with a unified set of standards. Furthermore, the Review highlights the tangible benefits of IFRS adoption, such as improved transparency, accessibility of financial information, and the facilitation of cross-border investments. The review addresses the role of IFRS in supporting investor decision-making and promoting confidence in financial markets by providing a clear and consistent representation of financial performance. In conclusion, the Review synthesizes the multifaceted impact of IFRS on global accounting practices, encompassing both the advantages and challenges associated with this international accounting framework. The review sheds light on how IFRS has evolved to become a cornerstone of financial reporting in an increasingly interconnected world, where the harmonization of accounting practices serves as a catalyst for global economic integration and informed decision-making.