The implications of the IFRS adoption in emerging economies

Abstract

The study analyses the effects of the adoption of IFRS Standards on emerging economies. In the first section, the study analyses the development of the IASB and the rapid increase of the number of jurisdictions that have adopted, with a particular focus on the Emerging Economies Group and the different types of adoption methods within the group. The second part of the study focuses on the literature review, here the study evaluates theoretical studies that look at the adoption and at the consequences of such from an institutional perspective. The second segment of the literature review focuses on empirical study and their analysis of economic effects on GDP and FDI caused by the adoption of IFRS. Lastly, the paper analyses GDP and FDI development indicators for the jurisdictions members of the Emerging Economies group in order to understand the economic implications of the adoption in these countries.