Question

how could researches evaluate the decision usefulness of adopting ifrs

Answer 1

The researchers can evaluate the decision usefulness of adoption of IFRS by examining examine whether financial reports prepared under IFRS are beneficial and helpful for users. If IFRS is providing relevant and useful information in the accounting reports it must be assisting the users in making economic decisions. They emphasize the transparency in financial reports as part of the goal of IFRS. For evaluating the researchers have several ways. One approach is undertake a study investigating on value-relevance whether some items disclosed in financial reports, such as intangible assets or financial instruments, are value-relevant. These reports must provide reliable and relevant information for users. Furthermore the financial reporting quality is not only determined with the accounting standards however also by a country’s institutions, legal system, and culture. The researchers can also examine and evaluate with the survey of users of their financial reports or the firms that have adopted IFRS