IFRS Adoption in Pakistan an Empirical Analysis of the impact on Financial

Statements
By
M Azam S2021096004 (Assistants Account Manager)
Bilal
The objective / Purpose of the study:

The objective of the financial sector in developing any economy is advocated by most scholars. The
study will examine serval types of research that have connected the International Financial Reporting
Standards a set of high-quality, transparent, and comparable global accounting standards developed by
the International Accounting Standards Board (IASB), an independent standard-setting board. We will
find the IFRS Adoption in Pakistan an Empirical Analysis of the impact on Financial Statements.

Methodology:

Research Design

We will quantitative techniques to assess the impact of IFRS on Financial Statements will use in this
Study.

Data Collection

We will collect data for analysis consisting of 50 companies that are listed on the Pakistan Stock
Exchange PSX and mandatorily adopted IFRS.

We Will collect data through these three-step processes:

 First, IFRS figures which correspond to comparative figures present for the year prior to the
shift will collect from IFRS financial statements (i.e. balance sheet, income statement,
statement of comprehensive income/loss, and statement of cash flows).
 Second, CGAAP figures will collect from original CGAAP statements (published in the year
prior to the shift) for the same date and period.
 Third, the reconciliations and explanations will provide in the transition notes to IFRS
statements that will use in this Study.

Test:

Descriptive State

Regression

Conclusion:

This paper will try to evaluate the Adoption of IFRS in Pakistan brings good and bad. We will find the
IFRS Adoption in Pakistan an Empirical Analysis of the impact on Financial Statements

Originality/ Value
The principle of accounting, conservatism is useful for investors of business firms to protect their
investment and to enhance the value of the firm. Regulatory bodies and standard setters should adopt
the accounting principle of conservatism in the presentation of financial statements of firms under
international reporting rules and regulations like IFRS rather than under local/national reporting
standards such as GAAP, further, to motivate the firms’ managers to show a fair picture of firms’
position before the investors for efficient investment.