A deep dive into the quality of financial reporting under International Financial Reporting Standards suggests it’s no better than the quality of reporting produced under U.S. Generally Accepted Accounting Principles.
Audit Integrity recently studied a subset of filings from 17 European countries from 2001 to 2008, taking in filings both before and after entities adopted IFRS in 2005 under European Union mandate. The study sought to determine whether IFRS has been implemented consistently across Europe, whether it has resulted in a common method of reporting financial data, and how the depth and comparability of data under IFRS compares to U.S. GAAP.
