IFRS-Local GAAP Reconciliation Statements : Insights from the Academic Literature

The main objective of International Financial Reporting Standards (IFRS) is to promote a single set of accounting standards which can be applied globally. IFRS 1 requires IFRS adopter firms' to prepare at least one year of comparative information under IFRS and under local GAAP, which is termed as IFRS-Local GAAP (e.g., IFRS-UK GAAP for the UK) reconciliation statement. Thereafter, this IFRS-Local GAAP reconciliation statements have been used extensively in accounting research. This present study provides a comprehensive review of extant literature on the use, and on the importance of IFRS-Local GAAP reconciliation statements. This study should be useful to academics interested in IFRS study. More importantly, this study will be useful to those countries planning to adopt or in the process of adopting international accounting standards (e.g., Indonesia, Japan)