The evolution of financial reporting from GAAP to IFRS and beyond
Kawa Wali & Rodrigo Velasco
Abstract
The evolution of financial reporting standards has been marked by significant shifts from the traditional Generally Accepted Accounting Principles (GAAP) to the globally recognized International Financial Reporting Standards (IFRS). This research explores the historical development, key differences, and implications of transitioning from GAAP to IFRS, along with emerging trends that may shape the future of financial reporting. Through a mixed-methods approach, including qualitative interviews with accounting professionals, auditors, regulatory bodies, and quantitative analysis of financial data from organizations that have undergone this transition, the study aims to provide a comprehensive understanding of the impact of IFRS adoption on financial transparency, comparability, corporate governance, and investor behavior. The findings indicate that IFRS adoption improves financial transparency and comparability, positively influences corporate governance, and enhances investor confidence. Furthermore, the study highlights the growing importance of Integrated Reporting (IR) and Sustainability Reporting, as well as the transformative role of technology in financial reporting. Future research should focus on longitudinal studies to assess the long-term impacts of IFRS adoption and explore the integration of emerging technologies, such as blockchain and artificial intelligence, in financial reporting. These insights will be valuable for policymakers, businesses, and stakeholders in navigating the evolving landscape of financial reporting, ensuring better decision-making and enhanced global financial coherence.
Keywords
financial reporting, accounting standards, financial transparency, corporate governance, financial technology, regulatory bodies
Author information & Contribution
Kawa Wali. Corresponding author. Ph.D. in Financial Accounting, Senior lecturer and financial adviser, Salahaddin University-Erbil- Kurdistan Region-Iraq, Email: kawa.wali@su.edu.krd
Rodrigo Velasco. Gulf College, Sultanate of Oman
“All authors equally contributed to the conception, design, preparation, data gathering and analysis, and writing of the manuscript. All authors read and approved the final manuscript.”
Disclosure statement
No potential conflict of interest was reported by the author(s).
Funding
This work was not supported by any funding.
AI Declaration
Notes
This paper is presented in 5th International Conference on Multidisciplinary Industry and Academic Research (ICMIAR)
Acknowledgement
References
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Cite this article:
Wali, K. & Velasco, R. (2024). The evolution of financial reporting from GAAP to IFRS and beyond. Industry and Academic Research Review, 2(1), 128-136. https://doi.org/10.53378/iarr.924.125
License:
This work is licensed under a Creative Commons Attribution (CC BY 4.0) International License.
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