The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research reviews academic research into the effects of mandatory adoption of IFRS in the EU and summarises what it tells us about the costs and benefits of adoption. (Updated April 2015.)

The report finds that there is evidence of benefits following IFRS adoption in relation to financial reporting transparency and comparability, the cost of capital, market liquidity, corporate investment efficiency and cross-border capital flows.

But the evidence on some of these matters is disputed and it is unclear how far the benefits identified are attributable to the adoption of IFRS or to other concurrent institutional changes, particularly in enforcement.

What is clear is that the benefits found are uneven, varying with the institutions and incentives that apply for different companies in different countries.

The report was first issued in October 2014, and an updated version published in April 2015. The key conclusions are unchanged.

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Source: icaew.com