Globalization has changed the international economy into a global village. Multinational corporations
(hereafter MNCs) are carrying out business in the world market. It is nec- essary for the MNCs to adopt a
common set of globally accepted accounting principles (GAAP). IFRS adoption has provided benefits in
the Financial Statements of Compa- nies by improving comparability and transparency in accounting (Yip
and Young, 2012), high quality financial reporting (Lang et al., 2006) along with voluntary disclosure
prac- tices (Hussainey and Mouselli, 2010). In 1973, International Accounting Standard Com- mittee
(IASC) was set up. In 2001, International Standard Committee (IASC) was su- perseded by International
Accounting Standard Board (IASB). International Accounting Standard Board (IASB) issues the
international financial reporting standards (IFRS). IFRS are formerly known as International Accounting
Standards (IAS).