Analysis of the impact of International Financial Reporting Standards on taxation: Global trends and challenges

Abstract

The study investigates how the adoption of IFRS has affected taxation worldwide. Bibliometrix and VOSviewer were used to assess 278 pertinent publications based on data from the Scopus database. Networks of collaboration, publishing trends, and research trends were found. According to the findings, the adoption of IFRS has increased the comparability and transparency of financial statements, but it has also made fiscal planning more difficult because accounting and tax rules diverge. The tax base and fiscal planning are greatly impacted by the implementation of IFRS, which also affects tax laws and revenue collection. According to the reviewed research, IFRS can enhance the correlation between accounting estimates and future cash flows and enable tax-motivated income shifting. However, each nation's unique legal and economic environment determines how effective it is. Fiscal conflicts, governance, and economic competitiveness are important thematic areas. The study concludes that while IFRS has benefits for financial transparency, it is essential to apply them in a way that is specific to each jurisdiction in order to optimize the advantages and minimize the disadvantages.