European Union passed a resolution in 2002, which bound all the
listed companies and firms and required the consolidated and simple
accounts to use Financial Reporting Standards starting from January 2005. It will
improve firm performance and will have an influence on
the information environment for the listed firms. This
study provides empirical and theoretical literature
regarding the adoption of IFRS, accounting
Conservatism and firm performance. This paper provides
different theories that discuss the impact of IFRS and
accounting conservatism on a firm performance that
includes positive accounting theory, modernization
theory, contingency theory, and world system theory.
1-Maqsood Haider Assistant Professor, Department of Management Sciences,FATA University, F.R. Kohat, Pakistan.2-Muhammad Aamir Assistant Professor, Department of Commerce, Bahauddin Zakariya University, Multan, Punjab, Pakistan.3-Muhammad Tahir Khan Assistant Professor,Faculty of Economics and Business, University Malaysia Sarawak, Malaysia.