Impact of Mandatory IFRS Adoption on Accounting Practices: Empirical Evidence from Pakistan

Abstract

Accounting practice in Pakistan has become an issue of investigation into the effect of obligatory adoption of International Financial Reporting Standards (IFRS). The basis of the article is the review of changes in the earnings management, the fair character of proving the financial reports, the extent of comparativeness of the financial statement in 2008 to 2020 with the help of panel data set which covers 200 non-financial organizations which are at the list of the Pakistan Stock Exchange since 2008 when it switched to the IFRS. The study finding is that the management has gone so much down after the introduction of it earned management is whereby there have been improvements in quality of disclosure and comparability of the financial statements after the introduction of it. The results can indicate that a generic standard of any emerging market of financial reporting has been improved due to the use of IFRS. The results have implications to the regulators, the policymakers and the practitioners who are generally interested in improving the standard of financial reporting in developing economies and this outcome can not be ignored.