3. Literature ReviewOver the last t

3. Literature Review
Over the last two decades a considerable amount of literature has been published on
the topic of IFRS harmonisation, convergence and the feasibility of a single set of
globally accepted accounting standards. For the purpose of this paper, we highlight the
more recent literature that addresses both desirable and non-desirable characteristics of
IFRS convergence as well as the potential challenges of a smooth IFRS convergence
process.
3.1 Advantages and Benefits of IFRS
Proponents of IFRS claim that IFRS possess many advantages over the domestic
accounting standards of individual countries. Several studies report improvements in
accounting quality following voluntary IFRS adoption (Barth, Landsman & Lang 2008)
as well as mandatory IFRS adoption (Daske et al. 2008). For example, Barth et al.
(2008) provide evidence from 21 countries showing that firms applying international
accounting standards generally had less earnings, more timely loss recognition and
more value relevance of accounting amounts than others.
Prior researchers provided many reasons for a higher accounting quality in financial
statements under IFRS;
 they were originally designed for developed capital markets and, therefore, more
relevant to investors (Ball 2006),