IFRS diffusion and adoption patterns
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Although International Financial Reporting Standards (IFRS) have clearly emerged as the preferred global accounting standard, previous studies of IFRS have mainly focused on post-adoption outcomes. The few IFRS adoption-focused studies are either limited in scope or are based on outdated versions of IFRS. This dissertation fills these holes in the literature by offering a comprehensive analysis of IFRS adoption. This is completed first, through an expanded classification system which includes local adoption as a distinct form of IFRS adoption. Statuses by country were mapped out to help gain a visual understanding of what IFRS adoption looks like. Next, through ANOVA, discriminant analyses and regression analyses, several variables were identified as significant drivers of adoption status. The Asian region, a variable not identified as significant in the existing literature, consistently emerged as a powerful driver of adoption type. This discovery suggests previous analysis of IFRS diffusion is incomplete, missing this key region variable. These findings also indicate that despite globalization, geography is still driving countries' decision making processes, dictating not only whether or not to adopt IFRS but also if modifications should made. When making modifications to IFRS, factors such as level of development, cultural variables, legal system and market-orientation are also driving the process. Furthermore, accountants and policy makers can use this expanded framework to pinpoint which adoption status would work best in their respective countries. This expanded typology suggests that the system of country classification of required/not required currently used is inadequate in capturing how IFRS is adopted in practice. The expanded categories of not only local adoption but also different varieties of local adoption, offers an expanded framework for future research opportunities to analyze the relationship among IFRS adoption, economic growth, and cross-national reporting reliability and comparability.