Progress of and Obstacles to IFRS Implementation in an Emerging Economy: Auditors’ Perspective

Min Cai, Theodore T.Y. Chen, Gaoguang Zhou*

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review


Successful implementation of the International Financial Reporting Standards (IFRS) is particularly challenging in emerging economies where IFRS-compatible institutions are underdeveloped. In this study, we conduct a survey and in-depth interviews with experienced auditors in China, the largest emerging economy in the world, to advance our understanding of the extent of the success of IFRS implementation and the obstacles that arise during the IFRS implementation process. Our study reveals that although the majority of the respondents agreed that the implementation of the IFRS has achieved its goals, including improving reporting quality, lowering the cost of capital, attracting more foreign investors, and promoting corporate governance performance, a substantial proportion of them remained pessimistic. Our study also identifies several factors that adversely affect the successful implementation of IFRS in China. Qualitative feedback from the interviews provides further insights into how these factors affect IFRS implementation. Our findings provide implications for other emerging economies with similar institutional backgrounds to China.
Original languageEnglish
Pages (from-to)1-30
Number of pages30
JournalChina Accounting and Finance Review
Issue number1
Publication statusPublished - Mar 2020

User-Defined Keywords

  • International Financial Reporting Standards
  • China
  • Survey


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