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Business and Social Sciences

Volume 3 Number 1 2025

Article Contents

RESEARCH ARTICLE   (Open Access)
Contents Vol 3 (1)

Assessing the Adoption of IFRS and Its Effects on Financial Reporting Quality in Developing Countries

Md. Arif Hossen1*, K.M. Salman-Al-Mamun2, Ripon Chandra Das3,4, Sk Md Zafar Iqbal5, Md. Halimuzzaman6

+ Author Affiliations

Business and Social Sciences 3 (1) 1-9 https://doi.org/10.25163/business.3110312

Submitted: 06 May 2025 Revised: 26 July 2025  Published: 28 July 2025 

Abstract

We investigated IFRS adoption and its impact on financial reporting quality in developing countries, pointing out its significance in promoting global transparency and comparison. The main objective was to assess the IFRS adoption level and investigate its perceived effect on the quality, relevance, and value of financial statements. Highlighting the significance of reliable accounting information in a highly uncertain investment and governance environment, the research utilized a descriptive survey design and a structured questionnaire administered to 120 finance professionals in selected developing countries. The results indicated an excellent level of IFRS awareness and partial to full adoption in many firms, which led to enhancing the transparency, comparability, and decision-usefulness of financial statements according to respondents. However, we also identified difficulties like low expertise, high deployment cost, and in-depth standard barriers. The research findings indicated that IFRS adoption positively impacted the level of financial reporting quality, and its effectiveness was conditional on institutional backing and professional capability. The implications are that, to achieve the full value of IFRS to emerging economies, policymakers and regulatory authorities should invest in training, infrastructure, and localized implementation.

Keywords: IFRS Adoption, Financial Reporting Quality, Developing Countries, Transparency and Comparability, Accounting Standards.

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