Transition to IFRS as a Mechanism for Increasing the Investment Attractiveness of the Economy

Abstract

The research studies transition to International Financial Reporting Standards (IFRS) as a mechanism for increasing the investment attractiveness of the economy. Based on the international experience of 183 countries and World Bank statistics for 2022 by methods of correlation and regression analysis, the author has carried out econometric modeling of the impact of globalization in the context of its areas on the investment climate in the economy. The main author's conclusion is that the transition to IFRS is an effective but contradictory mechanism for increasing the investment attractiveness of the economy, which should be managed considering the national specifics of internal and external investment flows. The research novelty lies in the study the transition to IFRS not as a separate and independent business practice but as a means of improving the investment climate in the economy. The theoretical significance is that it bridges the gap between globalization governance and investment policy. The author argues that globalization should be implemented to support the transition to IFRS to improve the investment attractiveness of the economy. The practical significance is expressed in the fact that the author's proposed recommendations on diversification of globalization areas will help accelerate the transition to IFRS of business structures worldwide. The research is significant for investment policy in that the author's forecast and the proposed recommendations will help optimize the globalization effects on the investment attractiveness of the economy on the example of Uzbekistan. The recommendations can be used to develop the investment policy in Uzbekistan to improve its efficiency.

Citation

Tukhliev, B.K. (2024), "Transition to IFRS as a Mechanism for Increasing the Investment Attractiveness of the Economy", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33A), Emerald Publishing Limited, Leeds, pp. 83-90. https://doi.org/10.1108/S1877-63612024000033A010