This research aims to examine whether the adoption of IFRS decrease earnings management in companies from Asian countries. This research considers the impact of country level investor protection on the adoption of IFRS that would affect earnings management. Kothari et al. (2005) model is used to calculate discretionary accruals to measure earnings management. Unlike most of previous research, the result shows that earnings management is higher after the adoption of IFRS. This increase in earnings management is likely due to IFRS adoption which is still at an early stage. Principle-based IFRS characteristics provide a broader judgment area for management. Thus, in the transition period of IFRS adoption, management may use its discretion in preparing financial statements. However, the positive relation of IFRS with earnings management level is lower in countries with strong investor protection.