A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting

Abstract

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

Mapping Global Research on International Financial Reporting Standards: A Scientometric Review

“…Of course, IFRS reviews are not new, as there are reviews on IFRS adoption (De George et al, 2016;Khlif & Achek, 2016), on single standards (Merz, 2017), IFRS adoption in the singled out region (Jang et al, 2016;Tawiah & Boolaky, 2019) as well as the impact of IAS/IFRS on quality of financial reporting (Wadesango et al, 2016). Having said that however it should be noted that all these papers use a completely different methodology, which contrasted those papers and our study.…”

The Effectiveness of Tax Systems on Artisanal Miners and Small-Scale Miners

“…Tax is a payment to the state by an individual which is compulsory" (Wadesango et al, 2020). In TRA handbook (2008) "tax is an essential part of the government fiscal policy.…”

“…"Economy stresses out the need for reducing the revenue collecting costs. This canon is directly associated with the principle of simplicity that is tax systems have to be easy such that it is not difficult to understand and administer them" (Wadesango et al, 2020).…”

“…Theories of Tax Practices: Slemrod (2003) postulates that there is an increase in the amount of evidence from experiment studies that shows that citizens' trust in other people and by his/her observations trustworthiness of the government leads to equal tax assessment. Consequently, from these observation citizens are likely to pay taxes to the government only when they believe that the taxes will be used on their interests, the government's procedures are fair and reasonable and when their trust in the state and others is reciprocated Wadesango et al (2020). Field (2006) claims that citizens are only willing to pay taxes voluntarily when the government has the capacity to provide goods and services otherwise, they will not comply.…”

“…"Also, the skills executed in the informal sector are got outside the formal education" (Feige, 1994). Finally, "the informal sector works under free competitive markets meaning there is slight or no government participation on how the business operates" (Wadesango et al, 2020). Feige (1994) asserts that "the informal sector like all other economic activities contribute to the GDP officially calculated but has unregistered individuals.…”