The Role of IFRS in Enhancing Cross-Border Financial Comparability
Dr. RITA RAMJI RAUT
Yashwantrao Chawhan Arts, Commerce, and Science College,
Lakhandur Dist. Bhandara, Maharashtra
rrr.yccl16@gmail.com
8208438722
Abstract
The increasing globalization of capital markets has intensified the demand for comparable and high-quality financial information across national boundaries. International Financial Reporting Standards (IFRS) were developed to establish a uniform accounting framework that enhances the comparability, transparency, and reliability of financial statements worldwide. This research paper examines the role of IFRS in enhancing cross-border financial comparability and facilitating international investment decisions. Using a conceptual and literature-based research approach, the study analyzes the mechanisms through which IFRS promotes consistency in financial reporting, reduces information asymmetry, and improves market efficiency. The paper also discusses the limitations and challenges associated with IFRS adoption, including differences in enforcement, institutional frameworks, and accounting judgments. The study concludes that IFRS has played a significant role in improving cross-border financial comparability, although its effectiveness depends on consistent implementation, regulatory enforcement, and professional competence.
Keywords
International Financial Reporting Standards; Cross-Border Comparability; Global Capital Markets; Financial Reporting; Accounting Harmonization
DOI link – https://doi.org/10.69758/GIMRJ/2512S01V13P002
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