Chapter 1: Introduction – International Financial Reporting Standards (IFRS): Where are We Now

Following the uncertainty of regulatory reform under Brexit and the Donald Trump Administration Era, this instalment of Accounting Matters explores the future of IFRS, Mr Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), and Mr Michael Izza, Chief Executive of the Institute of Chartered Accountants in England and Wales (ICAEW), were both optimistic about the future of IFRS (Nurunnabi, 2019; The International Financial Reporting Standards Foundation, 2020).

The adoption of IFRS increases the transparency of financial information and the globalisation of capital markets and attracts foreign direct investment (FDI; Albu, Albu, & Alexander, 2014; Ding & Su, 2008; Lin, 2012; Nurunnabi, 2014a, 2014b, 2015a, 2015b; The World Bank, 2011; Zeghal & Mhedhbi, 2012). The G20 and other major international organisations (International Organization of Securities Commissions (IOSCO), World Bank), as well as very many governments, business associations, investors, and members of the worldwide accountancy profession strongly support the goal of a single set of high-quality, global accounting standards (The International Financial Reporting Standards Foundation, 2020). According to G20 (2012), G20 leaders’ declaration, 2012, in Mexico: