Review of IFRS consequences in Europe: An enforcement perspective
The purpose of this paper is to review existing literature on the consequences of International Financial Reporting Standards (IFRS) adoption in Europe with a specific focus on different enforcement environments. Following prior studies, we adopt the critical review approach. We begin the review in...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2022.2148869 |
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| author | Geraroid O Cualain Vincent Tawiah |
| author_facet | Geraroid O Cualain Vincent Tawiah |
| author_sort | Geraroid O Cualain |
| collection | DOAJ |
| description | The purpose of this paper is to review existing literature on the consequences of International Financial Reporting Standards (IFRS) adoption in Europe with a specific focus on different enforcement environments. Following prior studies, we adopt the critical review approach. We begin the review in Europe and then provide a comparative analysis among four countries based on their enforcement environment. Academic papers were collected from high-quality ranked journals. The literature was analysed on different streams, including comparability, audit services liquidity and earning management. Our critical review indicates that the consequences of IFRS adoption depend on the country’s enforcement environment. If a country has strong enforcement, then the consequences of IFRS adoption are more pronounced for both positive and negative consequences. This was the case for the UK and Germany. If a country has a weak enforcement environment, the consequences are less pronounced, as was the case for Spain and Italy. The consequences of IFRS adoption include increased comparability, audit fees, liquidity, earnings management and investment. If a country is to realise the benefits of IFRS adoption fully, it is not sufficient to just adopt the standards; there must be a strong enforcement environment. The paper makes suggestions for further research in the context of IFRS consequences. |
| format | Article |
| id | doaj-art-d474cf2c3c354daa82ac6fb066adddb5 |
| institution | DOAJ |
| issn | 2331-1975 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-d474cf2c3c354daa82ac6fb066adddb52025-08-20T03:08:24ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2022.2148869Review of IFRS consequences in Europe: An enforcement perspectiveGeraroid O Cualain0Vincent Tawiah1DCU Business School, Dublin City University, Dublin, IrelandDCU Business School, Dublin City University, Dublin, IrelandThe purpose of this paper is to review existing literature on the consequences of International Financial Reporting Standards (IFRS) adoption in Europe with a specific focus on different enforcement environments. Following prior studies, we adopt the critical review approach. We begin the review in Europe and then provide a comparative analysis among four countries based on their enforcement environment. Academic papers were collected from high-quality ranked journals. The literature was analysed on different streams, including comparability, audit services liquidity and earning management. Our critical review indicates that the consequences of IFRS adoption depend on the country’s enforcement environment. If a country has strong enforcement, then the consequences of IFRS adoption are more pronounced for both positive and negative consequences. This was the case for the UK and Germany. If a country has a weak enforcement environment, the consequences are less pronounced, as was the case for Spain and Italy. The consequences of IFRS adoption include increased comparability, audit fees, liquidity, earnings management and investment. If a country is to realise the benefits of IFRS adoption fully, it is not sufficient to just adopt the standards; there must be a strong enforcement environment. The paper makes suggestions for further research in the context of IFRS consequences.https://www.tandfonline.com/doi/10.1080/23311975.2022.2148869IFRS AdoptionconsequencesEuropeenforcementearnings managementvalue relevance |
| spellingShingle | Geraroid O Cualain Vincent Tawiah Review of IFRS consequences in Europe: An enforcement perspective Cogent Business & Management IFRS Adoption consequences Europe enforcement earnings management value relevance |
| title | Review of IFRS consequences in Europe: An enforcement perspective |
| title_full | Review of IFRS consequences in Europe: An enforcement perspective |
| title_fullStr | Review of IFRS consequences in Europe: An enforcement perspective |
| title_full_unstemmed | Review of IFRS consequences in Europe: An enforcement perspective |
| title_short | Review of IFRS consequences in Europe: An enforcement perspective |
| title_sort | review of ifrs consequences in europe an enforcement perspective |
| topic | IFRS Adoption consequences Europe enforcement earnings management value relevance |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2022.2148869 |
| work_keys_str_mv | AT geraroidocualain reviewofifrsconsequencesineuropeanenforcementperspective AT vincenttawiah reviewofifrsconsequencesineuropeanenforcementperspective |