The costs and benefits of IFRS implementation in the UK and Italy

Abstract

PurposeThe purpose of this paper is to examine the opinions of national stakeholders on the costs and benefits of International Financial Reporting Standards (IFRS) implementation and to determine whether countries with disparate social, economical and political backgrounds have different experiences when complying with IFRS.Design/methodology/approachSemi‐structured interviews were conducted with preparers, users and auditors of annual reports and accounting regulators in the UK (including Ireland) and Italy.FindingsThere were some differences in the experiences of IFRS implementation between stakeholders from different countries. However, there was widespread agreement that costs exceeded the benefits of reporting under the new standards. Further it is recognised that international standard‐setters have a large set of stakeholder views to manage and it is therefore important that standard‐setters are aware of the costs and benefits of their accounting requirements.Originality/valueThis analysis is useful for companies that have not already adopted IFRS. It explains the differences and similarities of the costs and benefits of IFRS implementation from an Anglo‐Saxon and an EU continental perspective.