Critique Paper on the Discussion of the Determinants and Consequences of Heterogeneous IFRS Compliance Levels Following Mandatory IFRS Adoption: Evidence from a Developing Country

The Philippines known as one of the developing countries in Southeast Asia has also become one of the countries supporting the shift and full compliance with the International Financial Reporting Standards (IFRS). The change from following the U.S GAAP or the localized version of the U.S GAAP to the International Financial Reporting Standards has become one of the main priorities in the accounting system of the country. However, there is a need to fully understand whether or not there really is an economical benefit in the full compliance of the IFRS. This is needed in order to ensure that the full compliance is the best decision for the country.

The full compliance with the International Financial Reporting Standards have been said to provide many benefits for the members of the European Union focusing more on the developed countries who are globally competing and interacting with one another. However, it is difficult to fully grasp the effect and benefits of the full compliance or any levels of compliance with the IFRS in relation to developing or less developed countries because of the lack in data and the different perspectives followed between the IFRS and the local accounting system of a particular entity. The need to interpret the effects of the different levels of compliance with the IFRS is encouraged and greatly needed however because at least two thirds of the members of the European Union fall under the developing and less developed countries, DLDC. This is where the need to critique the given article lies.

The discussion of the determinants and consequences of heterogeneous IFRS compliance levels following mandatory IFRS adoption: evidence from a