The IASB and Comparability of International Financial Reporting: Research Evidence and Implications

One motivation for the adoption of International Financial Reporting Standards (IFRS) is to improve the comparability of financial information presented by listed companies and thereby to contribute to improving transparency, accountability and efficiency in financial markets around the world. Beginning from the perspective of the International Accounting Standards Board (IASB) and academic researchers, I describe what is meant by comparability and then I list four areas of research where academics have investigated comparability of IFRS financial statements. Within each area I present examples of studies, usually around the time of adoption of IFRS, and discuss the implications of the research findings for the work of the IASB and the activities of other bodies supporting the implementation of IFRS. Finally, I identify areas of future research that could contribute to public policy deliberations. International Financial Reporting Standards are often adopted to promote comparability in financial reporting. This article examines what is meant by comparability and describes four areas of research about comparability. The author considers the implications of the evidence for the work of the IASB and then identifies future research opportunities.