Assessing The Impact Of International Financial Reporting Standards (IFRS) Adoption On Financial Statement Comparability And Market Efficiency

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Published: 2026-02-05
DOI: https://doi.org/10.53555/jtar.v22i1.96
Keywords:
International Financial Reporting Standards, comparability, information asymmetry, market efficiency, institutional environment

Main Article Content

Dr. Sachin Lad
Dr. Sreelakshmi P
Dr. L. Geetarani Devi
Radhika Sandhad
Dr. Manisha
Dr. CA Jayesh Manjrekar

Abstract

This study constructs a conceptual framework to describe the effect of International Financial Reporting Standards adoption on reporting quality and market conduct using the financial statement comparability mechanism. The model suggests that adoption of the standards increases comparability as it fosters similar recognition, measurement and disclosure of the entities and jurisdictions. Enhanced comparability minimizes information asymmetry among the financial statement users, which enhances more appropriate valuation, effective price discovery, and eventually higher market efficiency. The paper goes further to indicate that the extent to which these benefits are realised is determined by the institutional settings, such as enforcement of the regulations, quality of audits, cultural and investor sophistication. The research will fill the gaps in the literature, which frequently offers disjointed results on the impact of standard adoption by incorporating the knowledge of accounting, finance, and institutional theory. The model is conceptual in nature and as such enables us to have a holistic view of the reporting reforms in terms of the economic outcomes. The paper wraps up by establishing the prospects of future empirical research that can confirm the suggested links and apply the framework to the new reporting areas, such as digital reporting and sustainability disclosures.


 

Article Details

Issue

Vol. 22 No. 1 (2026): Journal of Theoretical Accounting Research

Section

Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biographies

Dr. Sachin Lad

Professor, MIT- ADT University, Pune 

Dr. Sreelakshmi P

Associate professor, School of Business and Management, Christ University, Bangalore 

Dr. L. Geetarani Devi

Assistant Professor, College of Agriculture, Pasighat, Arunachal Pradesh,

Radhika Sandhad

Deputy Branch Manager (Credit Officer), Department of Banking and Operations, Union Bank of India 

Dr. Manisha

University Institute of Liberal Arts and Humanities, Chandigarh University, Mohali-140413, Punjab, India. 

Dr. CA Jayesh Manjrekar

Assistant Professor, IPrin. L. N. Welingkar Institute of Management Development and Research (PGDM), Mumbai 

How to Cite

Assessing The Impact Of International Financial Reporting Standards (IFRS) Adoption On Financial Statement Comparability And Market Efficiency. (2026). The Journal of Theoretical Accounting Research, 22(1), 253-260. https://doi.org/10.53555/jtar.v22i1.96

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