As willingness to trade increases, cross-border investment and integration of capital markets are easier with greater market liquidity and lower cost of capital (Hail 12). This means that investor bases would increase as the financial reports become more comparable Second, we expect convergence benefits to be more pronounced in industries where many non-U.S. peer firms have already adopted IFRS. Widespread adoption of IFRS in a particular industry may be an indication that the benefits (such as reduced information-processing costs) of adopting these standards are greater, resulting in a larger proportion of non-U.S. firms adopting IFRS.
Analogously, these benefits may also apply to U.S. firms in such industries, thus resulting in a more positive market reaction to IFRS adoption events for these firms. In line with this argument, the fact that many global competitors use IFRS would indicate more consistent global practices to deal with accounting issues, and possibly greater familiarity among the international investment community

Supporting this view, the SEC considered allowing certain
U.S. firms for which IFRS would be most beneficial to adopt IFRS early, and proposed that the use of IFRS by a majority of significant competitors should be the key requirement for deciding which firms would be eligible for this option

The adoption of IFRS can allow greats benefits for investors of companies in the US. One of the greatest benefits for the investors would be