A digital and tiered extension to IFRS for inclusive and technology-enabled financial reporting
Md. Miraj Hossen KhanPurpose
This study aims to examine the structural limitations of post-convergence global accounting systems and to develop a conceptual framework that enhances the adaptability of International Financial Reporting Standards (IFRS). While IFRS has improved global comparability, challenges remain in enforcement consistency, SME inclusiveness, digital integration, and sustainability reporting. The study introduces the Global Accounting Standards Extension Framework (GASF) as an evolutionary, extension-based approach designed to address these gaps. By proposing a tiered, modular and digitally enabled structure, the research seeks to contribute to the ongoing debate on the future direction of global accounting standard-setting.
Design/methodology/approach
The study adopts a qualitative and exploratory research design consistent with its theory-building objective. A structured comparative analytical framework is employed to examine differences among U.S. GAAP, IFRS and the proposed GASF across key dimensions such as scalability, digital compatibility and implementation flexibility. The analysis is based on secondary sources, including academic literature, standard-setting documents and institutional reports. To bridge theory and practice, the study incorporates a single illustrative case from an emerging economy context. The approach emphasizes conceptual clarity and analytical depth rather than empirical generalization.
Findings
The findings suggest that existing global accounting frameworks face limitations in addressing diverse institutional conditions, SME reporting needs and digital transformation requirements. The proposed GASF demonstrates enhanced adaptability through its tiered and modular design, enabling proportional reporting while maintaining IFRS-based recognition and measurement. The framework also shows stronger alignment with digital reporting environments and sustainability disclosure requirements, including IFRS S1 and S2. The case illustration indicates potential improvements in reporting consistency, efficiency and system integration, although implementation outcomes remain dependent on institutional and technological readiness.
Originality/value
This study contributes to the literature by reframing accounting convergence as an evolutionary process and by introducing an extension-based approach to global standard-setting. Unlike existing GAS frameworks, GASF integrates scalability, digital adaptability and sustainability alignment within a single coherent structure while preserving IFRS legitimacy. The study offers practical value for regulators, practitioners and policymakers by providing a flexible and inclusive reporting model. It also establishes a foundation for future empirical research on adaptive accounting frameworks in diverse institutional and technological environments.