Insights into accounting choice from the adoption timing of international accounting reporting standards

Abstract

This paper colle cts survey evidence on the costs and benefits of adoptingInternational Financial Reporting Standards (IFRS). It also examines themotivations for the timing of IFRS adoption. Significant differences existbetween early and late adopters for three of nine benefits and for one of six costmeasures. No significant differences exist in terms of firm size or the impact ofIFRS on contracts. Early adopters perceive themselves as market leaders. Theyare more certain about the manageability of implementing IFRS and are morespecific with regard to the impact of IFRS adoption. Late adoption decisionsare motivated by adverse consequences and uncertainty.