Compliance with International Financial Reporting Standards (IFRS) and Its Impact on Financial Reporting Quality

Abstract

This study aims to examine the level of compliance with International Financial Reporting Standards (IFRS) and its impact on improving the quality of accounting information within organizations. The importance of this topic has increased in light of global trends toward harmonizing accounting practices and enhancing transparency in financial reporting, which supports better decision-making for investors and other stakeholders.The study is based on five main dimensions to measure compliance with IFRS: knowledge and understanding of the standards, which focuses on the extent to which employees are aware of the fundamental concepts and principles of IFRS; commitment to applying the standards, which reflects the actual level of adherence in preparing financial reports; quality of financial reports, measured through characteristics such as relevance, reliability, and comparability; transparency and disclosure, which indicates the clarity and completeness of the information presented; and finally, challenges and obstacles that hinder the application of the standards, such as lack of expertise, complexity of certain standards, and the costs associated with implementation.

The findings reveal a positive relationship between the level of compliance with IFRS and the quality of financial reports. A higher level of understanding and commitment contributes to enhancing transparency and reducing accounting errors. The results also indicate that organizational and technical challenges still represent significant barriers to full compliance, highlighting the need for continuous training and professional development.