Regulation does protect domestic companies as often as it raises costs. Often, regulations are written in such a way that they act as a barrier for foreign companies. However, in the case of IFRS, the SEC rules actually favor foreign companies or those domestic companies that have moved to IFRS. Why? Regulation does protect domestic companies as often as it raises costs. Often, regulations are written in such a way that they act as a barrier for foreign companies. However, in the case of IFRS, the SEC rules actually favor foreign companies or those domestic companies that have moved to IFRS. Why