The adoption of International Financial Reporting Standards (IFRS) has become a global trend in accounting practices, aiming to enhance transparency, comparability, and reliability of financial statements across countries and industries. This review examines the adoption and impact of IFRS on financial reporting practices worldwide, with a focus on research published between 2012 and 2019. The paper provides an overview of IFRS, discusses the importance of IFRS adoption, and explores the factors influencing adoption decisions. It also examines the challenges faced during adoption, the impact of IFRS adoption on financial reporting quality, comparability of financial statements, and capital market effects. Additionally, the paper discusses the regulatory impacts of IFRS adoption and analyzes stakeholder perceptions and reactions. Criticisms and challenges of IFRS implementation are examined, along with a discussion on the future outlook and potential changes to IFRS, including the incorporation of sustainability reporting and the debate on principles-based versus rules-based standards. Overall, the review highlights the positive impact of IFRS adoption on global financial reporting practices and discusses the ongoing evolution of IFRS in response to changing business environments and stakeholder needs.

IFRS, financial reporting, adoption, impact, challenges, sustainability reporting, principles-based, rules-based.