Analysis to What Extent IFRS Contributes to the International Harmonisation of Financial Reporting

Sitian Yu

doi:10.54691/bcpbm.v35i.3250

Authors

Sitian Yu

DOI:

https://doi.org/10.54691/bcpbm.v35i.3250

Keywords:

IFRS, International Harmonisation, Financial Reporting.

Abstract

This study reviews and synthesises the research literature on the extent to which IFRS contributes to the international harmonisation of financial reporting. The main reason why international harmonisation is increasingly valued by the public is due to the global trading, a phenomenon that has led to a demand for high quality financial statements from investors. Therefore, it has been found that the main help and effect of ifrs on financial statements is to improve the comparability and quality of data, as well as to reduce costs and complexity, allowing investors to make better decisions. However, the variability that arises in practice can in some ways undermine comparability. However, the results of the current analysis show that ifrs has contributed significantly to the international harmonisation of financial statements.

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