Apart from the above advantages, there is a need to protect the investors by ensuring that the financial scandals such as that of Enron and Worldcom do not occur and thus there is a need to improve the quality of the financial disclosures and communication at global level. This has resulted in the adoption of IFRS. In the working paper by Ramanna & Sletten (2009), the research has been conducted on adoption of IFRS at country level by companies in 21 countries. It has been concluded that adoption of IFRS has resulted less earning management, timely loss recognition and more value relevance of accounting amounts. Thus overall there are huge benefits once the companies adopt IFRS or standard accounting practices.
This adoption of standard accounting standard can be viewed at International level wherein it has been adopted by Australia, South Africa and the European Union Nations. In 2005 the main user of the IFRS remained with European Union but in recent years there is an increase in number of developing countries adopting IFRS. A number of nations are reviewing the implications of adopting IFRS. However there are certain concerns regarding the difference between the IAS and US GAAP but steps are being taken to reduce the differences. Once done more countries will join and come in for adopting the accounting standards.