Location of Repository

The need for global adoption and adaptation of International Financial Reporting Standards (IFRS): post Enron consequences and the restoration of confidence to capital markets following the 2008 financial and stock market crises

By Marianne Ojo


Many questions have been raised as to whether financial accounting has become more conservative. The value relevance and qualitative characteristics of accounting information have become topics of particular relevance given the role they have assumed in influencing the value judgment of investors (local or international) in deciding whether or not to invest in a certain market. Given the quality of accounting information – which has resulted in misleading and inaccurate information (amongst many other low quality attributes), it became evident, particularly following Enron's collapse, to adopt improved, enhanced, better quality standards: namely, International Financial Reporting Standards. This paper considers the background culminating in the adoption of IFRS – as well as the need for the adoption of IFRS. It also highlights why the value relevance of accounting information is also of vital significance in certain emerging economies and why the successful implementation of IFRS in these jurisdictions may be crucial in restoring investor confidence – particularly in the aftermath of stock market crashes in these economies.

Topics: K2 - Regulation and Business Law, E0 - General, D8 - Information, Knowledge, and Uncertainty, M4 - Accounting and Auditing, C2 - Single Equation Models; Single Variables, G01 - Financial Crises
Year: 2012
DOI identifier: 10.2139/ssrn.2143610
OAI identifier: oai:mpra.ub.uni-muenchen.de:41135

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.