A limitation of this approach is that existing trade data incorporate the effects of the country i’s imminent IFRS harmonization as well. That is ,since we measure harmonization effective as of the implementation date, rather than the announcement date, existing trade data are likely to reflect at least some of the realized consequences of country i’s impending implementation. We ideally want to separate these realized effects from any measure of economic benefits perceived prior to the harmonization decision. The realized effects can result in either a boost or a decline in existing trade from the level of trade without the impending implementation , including auditing , securities laws , courts , and financial intermediaries. For example ,if IFRS harmonization decrease contracting efficiency , then imports will decrease because customers in country i will suffer worse credit terms based on