Why adopt IFRS?

Given the significant effort and costs to change from domestic standards to IFRS, there needs to be some benefit. According to a telephone survey of 187 professional investment fund managers in seven EU countries, there are several key benefits. They include improved transparency and management information, together with consistency of reporting across jurisdictions and sectors. Improved transparency provides better insight into corporate performance, which affects the perception of value and has an unmistakeable impact on investment decisions. Improved management information helps clarify financial risk and operational risk, directly influencing investment decision-making. The February 2006 survey, called IFRS: The European Investors’ View, was undertaken by PricewaterhouseCoopers and Ipsos Mori.