THE IMPACT OF IFRS ADOPTION ON ECONOMIC GROWTH IN TRANSITION COUNTRIES: EVIDENCE FROM CIS

Abstract

International financial reporting standards (IFRS) have become a worldwide common accounting language which most countries have adopted. However, there are no studies obtained based on transition economies in a particular geographic zone. Thus, this study is carried out to observe the influence of IFRS adoptation on the economic growth of 11 CIS countries from 2005 to 2018. To examine the actual effect of the variables, the regression model was divided into two submodels based on the category of variables. There is a difference between the economic growth in adopted and non-adopted states. The adoption of IFRS showed negative and insignificant relation to GDP per capita. The number of observations after fully adopting IFRS was low, the data on IFRS adoption was challenging, and an advanced econometric model should be selected. The study compared CIS results with Eastern European countries to see a clear pattern and generate an efficient suggestion for policy implementation. The policy implementations related to Uzbekistan were also provided.