In this study, we investigate the impact of IFRS adoption on the relevance of book value and earnings for equity valuation. The 2005 switchover to International Accounting Standards (IAS) in Europe andAustralia provides an ideal natural experimental setting. The opportunity is that the 2006 filings of European and Australian public companies contain restated 2005 GAAP numbers for each firm usingthe new IAS GAAP and the former country level GAAP used in 2005 for that firm. Our sample data, obtained from Worldscope, consist of 4,178 firms from 15 countries (3 Common Law and 12 Code Law). Our results suggest the following: (1) the adoption of IFRS has had a greater impact on the financial statements of Code versus Common Law countries, with the predominant effect of IFRS being to increase book value and earnings for Code Law countries consistent with the consensus view that Code Law GAAP was conservative in nature; (2) using the “same firm year” valuation relevance approach and relative tests, the adoption of IFRS results in a greater reduction in model absolute pricing errors for Code relative to Common Law countries; and (3) for Code and Common Law countries taken as a whole, our results are broadly consistent with IFRS financial statements conveying incremental value relevant information relative to local GAAP. Our results also suggest that researchers can test for the robustness of OLS results by incorporating alternative specifications that avoid the need for filtering and truncation. Herein, we consider both WLS and a product model in addition to OLS.