IFRS adoption and financial statement effects: The UK case

Abstract

This study investigates the impact of the implementation of the International Financial Reporting Standards (IFRSs) on key financial measures of UK firms and the volatility effects of IFRS adoption. The findings show that IFRS implementation has favourably affected the financial performance (e.g. profitability and growth potential) of firms. The study also demonstrates that following the fair value orientation of IFRSs the transition to IFRSs appears to introduce volatility in income statement figures. © EuroJournals Publishing, Inc. 2010.