The Economic Implications of IFRS Adoption on Disclosure Practices and Accounting Quality

Simi Anto, Dr. Bhupendra Bahadur Tiwari

Abstract: This paper explores the economic implications of adopting International Financial Reporting Standards (IFRS) with a particular focus on its effects on disclosure practices and accounting quality. Using data from 50 listed Indian companies across three key periods pre-adoption (2014), transition year (2016), and post-adoption (2018 we analyze key financial indicators such as Return on Assets (ROA), Return on Equity (ROE), Debt-to-Equity Ratio (D/E), and Earnings Per Share (EPS). Additionally, a 10-point Disclosure Quality Index (DQI) was used to assess the depth and transparency of financial disclosures. The findings show significant improvements in financial performance post-IFRS adoption, particularly in profitability indicators and disclosure quality, which suggest that IFRS adoption has contributed to enhanced transparency and better financial reporting practices.

Keywords: IFRS, Accounting Quality, Value Relevance, Financial Performance, AIS, Diffusion of Innovation Theory, Earnings Management

How to Cite?: Simi Anto, Dr. Bhupendra Bahadur Tiwari, "The Economic Implications of IFRS Adoption on Disclosure Practices and Accounting Quality", Volume 14 Issue 6, June 2025, International Journal of Science and Research (IJSR), Pages: 206-210, https://www.ijsr.net/getabstract.php?paperid=SR25418070211, DOI: https://dx.doi.org/10.21275/SR25418070211