Value relevance is widely applied as a construct and proxy for accounting quality. It is measured as the statistical association between financial statement figures and stock market values ([63] pg.302). It is inferred that the higher the association the higher the accounting quality [16] and more useful the accounting numbers issued by firms are to the valuation decisions by investors ([41], pg.5). This explanatory study uses desktop and library methodology to explore and present the worldwide extant empirical research evidence on the IFRS value relevance. The paper reveals that existing empirical studies have concentrated in developed capital markets with growing interest in developing countries context and report mixed and incoherent results which are difficult to generalize. It further divulges that IFRS can be equally useful in developed and frontier capital markets when coupled with appropriate enforcement mechanisms. The results from the review imply that IFRS is a critical determinant for quality reporting but not a conclusive determinant. I call for country specific empirically verified studies which assess impact of IFRS on value relevance in developing capital markets where they are especially lacking.

IFRS, value relevance, quality reporting, empirical evidence