The purpose of this study is to examine the factors that affect adoption of international accounting standards by developing countries. In order to gather the required data, the World Bank and the IFRS foundation and the other relevant information resources were utilized. The population of this study includes all the developing countries which are categorized as low or middle income per capita by the World Bank. The samples used in this study consists of 123 countries. The results of the study indicate that economic growth variable has significant and reverse effect and education and existence of capital market variables have significant and direct effect on adoption of IAS by developing countries. Moreover, given the findings of this study the degree of economic openness variable has no significant impact on adoption of IAS by those countries. The results of the study also suggest that there is no significant relationship between the size of capital market variable and adoption of IAS by the mentioned countries.