IFRS and international differences: an empirical analysis on their application worldwide

Abstract

This study is based on the analysis of Nobes (2006) and Zeff (2007), demonstrating that different countries tend to adopt IFRS through the implementation of the options that are closely related to their culture. In a sample of 189 publicly traded firms from 7 different countries, we provide a first evidence of the application of some specific IAS/IFRS standards worldwide. IFRS, like any other set of accounting standards, offer firms substantial discretion (different options) in applying the standards. Our descriptive statistics show that, on average, countries tend to implement the options more suitable for their accounting, legal and tax culture, making international differences within IFRS survive. This study wants to be a call for future research regarding the IAS/IFRS adoption worldwide.