Research Paper on International Financial Reporting

Running head: IFRS PROS AND CONS FOR INVESTORS
IFRS pros and cons for investors
Name of the student
Name of the university
Author note

2IFRS PROS AND CONS FOR INVESTORS
Table of Contents
1.0 Introduction..........................................................................................................................4
1.1 Importance of the Research..............................................................................................5
1.2 Research Questions..........................................................................................................5
2.0 Literature review..................................................................................................................6
2.1.1 Focus on the investors...................................................................................................7
2.1.2 Recognition of loss in timeliness..................................................................................8
2.1.3 Comparability................................................................................................................8
2.2.1 Requirement of high costs.............................................................................................9
2.2.2 Prone to manipulation...................................................................................................9
2.2.3 Not globally accepted..................................................................................................10
2.3 Conceptual Framework......................................................................................................10
2.4Summary.........................................................................................................................10
3.0 Research methodology:......................................................................................................12
3.1 Sample selection:...........................................................................................................12
3.2 Sample period:...............................................................................................................13
3.3 Model selection:.............................................................................................................13
3.4 Variable selection:..........................................................................................................14
4.0 Results and findings:..........................................................................................................15
5.0 Conclusion..........................................................................................................................18
5.1 Recommendation............................................................................................................19

3IFRS PROS AND CONS FOR INVESTORS
Reference..................................................................................................................................20

4IFRS PROS AND CONS FOR INVESTORS
1.0 Introduction
There are various standards and processes that are used in the current world and these
processes are useful for proper maintenance and functioning of the organizations that
existent. This research study tries to elaborate the significance of IFRS (International
Financial Reporting Standard) and their pros and cons that are existent for an investor. IFRS
has been in the forefront in the current agenda as the organizations that are listed are required
to disclose their financial statements in accordance the standards of accounting put forth by
IFRS (Doukakis et al., 2017). The International Financial Reporting Standard provides
assisting standards for the developing countries that would be helpful in increasing the
economic revenues by disclosing the fair and true position of the economy. This research
paper comprises of the precise discussion of International Financial Reporting Standard and
the pros and cons that are associated for the investors. The financial reports that are
constructed by the companies are seen by the investors relying on IFRS but have not been
able to experience the full scale of the adjustments for a yearly basis that might be triggered
by the IFRS (Rhee et al., 2016). It is essential to explain the pros and cons that is available to
the investors so that the investors gain knowledge about the same and take extensive
measures that would be beneficial for the investors with respect to their investments.
The initial section of the paper tries to explain the principles of International Financial
Reporting Standard so that a brief idea about the standard can be attained. The next section of
the paper tries to assess the pros and cons for the investors with respect to IFRS when it is
implemented by various countries. The pros and cons are different and depend upon by the
various external factors that are existent in various countries. The various councils that looks
in to these standards, constructs the strategy for the compliance of these standards with the

5IFRS PROS AND CONS FOR INVESTORS
ones that existent to the regulations and laws and even assesses the standards when
incorporated (Santana et al., 2014).
There are various importance and benefits of IFRS that is inclusive of comparative
assessment of the true and fair statements, precise resource allocation, confidence of the
investors etc. These are certain pros that can assist the investors in understanding their
investments and in the same manner undertake investments in a precise manner (Barbu et al.,
2014). The paper even tries to explain the obstacles and the cons that the investors can face
and therefore specific assessments can be taken in order to understand the same about the
topic.
1.1 Importance of the Research
The answering of these issues is vital as it would be helpful in discovering the pros
and cons that are existent in IFRS for the investors and thereby helping the companies and the
investors to gain knowledge about the same and construct their strategies in an effective
manner.
1.2 Research Questions
The research questions have been constructed in order to have an idea about the
International Financial Reporting Standard and the companies that have been incorporating
the same. The research question is helpful in constructing the course and the path that would
be followed in order to complete the research in an effective manner. The research questions
consist of the issue that is needed to be answered by the paper. The research questions are
given as follows:
Q1. What are the various factors that can have an impact on IFRS and in that manner can
have an impact on the investors?

6IFRS PROS AND CONS FOR INVESTORS
Q2. What are the benefits and the hurdles that are associated with IFRS to the investors?