Download or read book Adoption of IFRS in the Netherlands Impact on value relevance written by Alfred Mully and published by GRIN Verlag. This book was released on 2014-03-03 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Masterarbeit aus dem Jahr 2007 im Fachbereich BWL - Bank, Börse, Versicherung, , Sprache: Deutsch, Abstract: Listed Dutch firms are required by law to prepare their financial statements in accordance with the International financial Statements (IFRS) since 2005. Before 2005, listed Dutch firms prepared their financial statements using Dutch law, Title 9 of book two of the Dutch Civil Code. It is interesting to investigate the effect of the implementation of IFRS. Is the quality of the financial statements improved by the implementation of IFRS for the users of the financial statements, such as investors, suppliers and banks? This question can be answered in many ways, looking at different characteristics of the accounting information, for example the comparability, the relevance, the reliability and the understandability. In this thesis the relevance will be studied. Information has the quality of relevance when it influences the economic decisions of users by helping them evaluate past, present or future events or conforming, or correcting, their past evaluations. (IFRS Handbook, 2007, p. 40) In order to be relevant the accounting information must reflect the information needs of the users in valuing a company. In order to determine the market price of a company, investors need accounting information that reflects the share price of a company. The research done studying the relevance of accounting information for valuating companies is called value-relevance research. The implementation of IFRS had consequences for the value-relevance of the accounting information. Whether the value-relevance had improved by the adoption of IFRS is dependent on the differences between the former accounting system and IFRS. The impact on value relevance in the Netherlands has not been studied yet. The impact on value-relevance in other countries has been studied however, for example in the United Kingdom (Harris and Muller, 1999), Germany (Hung and Subramanyam, 2007) and Spain Callao et al. (2007). These studies can give a powerful insight in how the difference in value-relevance of two accounting systems can be studied.

Download or read book The Challenges and Prospects of IFRS Adoption in Ethiopian Commercial Banks written by Marenesh Abebe and published by GRIN Verlag. This book was released on 2018-03-02 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thesis (M.A.) from the year 2018 in the subject Business economics - Accounting and Taxes, grade: 2, Addis Ababa University, course: MBA in Finance, language: English, abstract: The study aims to examine the challenges and prospects of International Financial Reporting Standards (IFRS) adoption in Ethiopian Commercial Banks. To answer the research question and to achieve the objective of the study this paper adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics and data from interview and document review were interpreted qualitatively. The results show that IFRS adoption in Ethiopian Commercial Banks will result in a number of important benefits to a wide range of stakeholders. The study also found out that with the exception of capital market the other five variables namely need of amending legal and regulatory requirement , volatility of financial position and financial performance , difficulty of obtaining source documents and data ,need of updating the existing accounting software, information system and information technology of the bank, shortage of skilled and competent man power , shortage of strong professional bodies are the key challenges of IFRS adoption in Ethiopian Commercial Banks. Finally the study recommended the relevant commercial code, tax proclamation and NBE directive should be amended by Government organs in consultation with strong professional bodies , establishment of strong professional bodies and capital market, allocation of sufficient financial and other resources by top management , introduction of IFRS in colleges and universities and future adopters should think ahead the required source documents and data as well as ensure the extent of changes needed to update the existing IT infrastructure to satisfy IFRS requirements.

Download or read book Changes in Value Relevance of Financial Information Upon IFRS Adoption written by Keryn Chalmers and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate whether the adoption of IFRS increases the value relevance of accounting information for firms listed on the Australian Securities Exchange. Using a longitudinal study that covers pre-IFRS and post-IFRS periods during 1990-2008, we find that the combined relevance of book value of equity and earnings alters little with IFRS adoption. However, earnings become more value relevant whereas the book value of equity does not. This impact is concentrated in the sub-samples of large firms and firms that reported accounting information differences upon IFRS adoption. Consistent with an increase in the value relevance of earnings, earnings also become more persistent around IFRS adoption. Our study suggests that even for a country categorised by strong investor protection and high quality financial reporting and enforcement, IFRS adoption affects the associations between accounting information and market value.

Download or read book Handbook of Research on Institutional Economic and Social Impacts of Globalization and Liberalization written by Bayar, Yilmaz and published by IGI Global. This book was released on 2020-11-06 with total page 699 pages. Available in PDF, EPUB and Kindle. Book excerpt: Globalization is a multi-dimensional concept reflecting the increased economic, social, cultural, and political integration of countries. There has been no pinpointed consensus on the history of globalization; however, the globalization process has gained significant speed as of the 1980s in combination with liberalization. Many countries have removed or loosened barriers over the international flows of goods, services, and production factors. In this context, both liberalization and globalization have led to considerable institutional, economic, social, cultural, and political changes in the world. The liberalization and globalization processes have affected economic units, institutions, cultures, social lives, and national and international politics. The Handbook of Research on Institutional, Economic, and Social Impacts of Globalization and Liberalization provides a comprehensive evaluation of the institutional, economic, and social impacts of globalization and liberalization processes across the world. While highlighting topics like economics, finance, business, and public administration, this book is ideally intended for government officials, policymakers, practitioners, stakeholders, researchers, and academicians interested in the international impacts of globalization and liberalization across a variety of different domains.

Download or read book Value Relevance of IFRS Adoption in Emerging Countries written by Aîcha Bleuler and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates for three emerging countries from the Latin American region - Brazil, Mexico and Chile - the impact of IFRS adoption on accounting quality in terms of value relevance of earnings and book value of equity. Therefore, the institutional setting in Latin America is analyzed profoundly in order to identify country related factors potentially influencing accounting quality. Following, a sample period of four years was defined to examine empirically whether earnings and book value of equity are more value relevant after the mandatory adoption of IFRS in Brazil, Mexico and Chile (H1) and whether earnings and book value of equity are more value relevant under IFRS than under the domestic accounting standard (H2). The Brazilian sample consists of 136 firm year observations between 2008 and 2011, the Mexican sample consists of 128 firm year observations between 2010 and 2013 and the Chilean sample consists of 128 firm year observations between 2007 and 2010. The results obtained using the method of ordinary least square regression suggest that mandatory IFRS adoption increased the value relevance of earnings and book value of equity in Brazil, while for the Mexican and Chilean sample companies this could not be verified. In conclusion, the overall findings of this thesis show that countries from the same geographical region differ greatly with regards to their institutional framework and the effect of IFRS adoption on accounting quality was found to differ among countries in the Latin American area. This highlights the importance of country related institutional factors to be considered in the debate of accounting harmonization.

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Download or read book IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information written by Su Yan and published by . This book was released on 2018 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether accounting information of firms that voluntarily adopted IFRS provides incremental information to the capital market, using a sample of Japanese listed firms that disclosed reconciling items from Japanese Generally Accepted Accounting Principles (J-GAAP) to International Financial Reports Standards (IFRS) when they transfer from J-GAAP to IFRS for the first time. In details, applying level models, I tested the incremental content of reconciliation from J-GAAP to IFRS for investors interested in J-GAAP- and IFRS-based accounting numbers, respectively. The results show that the reconciliation items do have incremental information for IFRS-based other than J-GAAP-based accounting information users.

Download or read book Impact of the IFRS Adoption in the Value Relevance of Intangible Intensive Firms Accounting Reports written by Carlos Martinez and published by . This book was released on 2015 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the effects of the IFRS adoption in the value-relevance of accounting reports, making stress upon the impact on intangible intensive firms. I operationalized value-relevance through a share price regression based on Ohlson's (1995) model and used a sample of 304 firms from Brazil, Chile, Mexico and Peru for the period 2006-2013. I report two main findings. First, accounting reports have lost value-relevance after the IFRS adoption in the four countries researched. And second; after the IFRS adoption, the value-relevance for intangible intensive firms' accounting information decreased in Brazil (which did not fully adopted IAS 38) but increased in Mexico. Although the period researched coincides with the global financial crisis (2009), I included research design features to mitigate this effect.

Download or read book The Influence of IFRS Adoption on the Value Relevance of Accounting Information written by 鄭實奮 and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Insights into IFRS KPMG s practical guide to International Financial Reporting Standards 1 written by and published by . This book was released on 2013 with total page 1468 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Economic Consequences of Mandatory IFRS Reporting around the world written by Ulf Brüggemann and published by Springer Science & Business Media. This book was released on 2011-08-31 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ulf Brüggemann discusses and empirically investigates the economic consequences of mandatory switch to IFRS. He provides evidence that cross-border investments by individual investors increased following the introduction of IFRS.

Download or read book Disclosure Behavior of European Firms around the Adoption of IFRS written by Michael H. R. Erkens and published by Springer. This book was released on 2016-05-12 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Michael Erkens analyzes the determinants and consequences of information disclosure. He presents an empirical investigation of corporate risk management disclosures of nearly 400 firms from 20 European countries. The results show that countries’ institutional settings and cultural values are predominant factors why firms disclose information on their risk management practices. In another study, the author analyzes the economic consequences associated with the publication of an annual report in English by European firms from non-English speaking countries. He finds that the release of English annual reports attracts more analysts and foreign investors to the firm, and decreases information asymmetries between insiders and outsiders of the firm.

Download or read book IFRS Adoption and Financial Reporting Quality written by Habeeb Mohamed Nijam and published by . This book was released on 2016 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional and commonly held wisdom with respect to the adoption of International Financial Reporting Standards (IFRS) is that they lead to improved financial reporting quality and comparability and thereby favorable economic consequences. There are however contradicting evidences disproving this conventional wisdom or rejecting its gross generalization over the entire jurisdictions harmonizing on IFRS. Driven by this fact, quests for knowledge about the dynamics and contexts that lead to differential effects of IFRS get momentum. In an attempt to explore the insight into the effects of international accounting harmonization by way of IFRS adoption, this paper reviews selected literatures on consequences of IFRS adoption. This review discusses some empirical evidences that have been reported in various countries that include Europe, USA, United Kingdom, Germany, Spain, Norway, Greece, Poland, Belgian, France, Italy, Turkey, United Arab Emirates (UAE), Kuwait, Jordan, China, Malaysia, Australia, Hong Kong, New Zealand, Kenya and Nigeria. Our review focuses on the aspects of value relevance, disclosure quality, cost of capital, earning management and financial statement impact due to the IFRS adoption. This review reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though being its impact reported to be positive in majority of cases. There are also notable number of studies that report indifferent and or negative effects of IFRS adoption. When IFRS studies report mixed evidence with respect to value relevance of book value of equity and earing, book value of equity supersedes the earning parameters. IFRS are found to supersede many other domestic financial reporting standards in terms of volume and quality of disclosures in financial statements. This review also obtains that IFRS' impact on the reduction of cost of capital depends on financial reporting incentives, law enforcement, types of legal systems and various other country and capital market specific characteristics. Further, though there are some evidences to the contrary, the quality of earnings reported under IFRS has been established to be superior to that under other local standards.

Download or read book Global Comparability of Financial Reporting Under IFRS written by Francesco De Luca and published by Springer Nature. This book was released on 2022-11-14 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: The globalization of financial markets worldwide has progressively pushed toward simultaneous globalization of accounting information. Thus, during the last 50 years, categories of preparers, users, and regulators have devoted their efforts to support the global comparability of financial reporting aiming at favoring the comparison of corporates’ financial performances at a cross-country level. In the same vein, IASB, national standard setters, and jurisdictions have participated in and given momentum to this process. At the same time, academic research has followed this process and tried to build a theoretical framework to address the related issues, to assess the impact on preparers, users, and regulators, while defining hindrances and obstacles to the comparability of financial reporting especially in an IFRS environment. In this context, this book reviews research studies on the comparability of financial reporting at a global level as well as highlights empirical analyses that demonstrate the extent to which global comparability has been achieved, and how it enhances value relevance of earnings across countries. It also looks at the cross-country investors’ perspectives by shaping the empirical analysis to provide further insights on the role of the "Big Four" auditing services in enhancing the comparability of earnings. The book provides an original contribution to the current debate about the comparability of financial reporting under IFRS and will be useful for researchers in the field.

Download or read book The Impact of Mandatory IFRS Adoption on Value Relevance written by Gulsah Ustuner and published by . This book was released on 2017-07-12 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impacts of IFRS Adoption on Financial Statement Quality for Firms Listed in Indonesia Stock Exchange written by Felizia Arni Rudiawarni and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Objective - the objective of this research is to explain whether the adoption of IFRS in Indonesia has improved accounting information quality. Methodology/Technique - Earnings volatility and discretionary accruals are used to test the scope of earnings management on a set of accounting standard used. The regression of share price and book value per share and net profit per share, along with the explanatory power of the model were used to test the value relevance of the accounting standards applied. Findings - This research finds that no significant difference of earnings management's scope after the mandatory adoption of the IFRS. Moreover, this research also finds that IFRS does not result in higher value relevance. Novelty - This research presents evidence of IFRS convergence from an emerging market point of view, particularly in Indonesia. Focus of this research is to examine the impact of IFRS adoption to financial statement quality using multiple measurements. Type of Paper: Empirical.

Download or read book An Empirical Analysis of the Impact of Adopting International Financial Reporting Standards written by Mohamed H. Warsame and published by . This book was released on 2006 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of adopting International Financial Reporting Standards (IFRS) and the prior and superseded International Accounting Standards (IAS) on investor returns, the level of earnings management and the value relevance of accounting information in African capital markets. This study is motivated by the growing momentum of African countries adopting International Financial Reporting Standards (IFRS) for listed, cross listed or even unlisted companies. Prior to the adoption of IFRS, a high level of diversity existed in accounting standards between African countries. These differences consisted of the number of promulgated standards, conservatism of these standards, their completeness for potential accounting transactions, depth and guidelines on allowable measurement methods and disclosure requirements. First, this study empirically examines whether IFRS adoption has impacted investor returns through the informativeness of reported earnings and secondly, whether the level of discretionary earnings management as determined by several models and proxies has declined from the IFRS adoption. Thirdly, this study examines the changes in value relevance of accounting information from the migration to IFRS. This study finds significantly higher informativeness of reported earnings under IFRS for investor returns compared to earnings per share (EPS) reporting under local GAAP after controlling for confounding factors. This provides evidence for the valuation impact of IFRS adoption. Furthermore, this study finds evidence of significantly lower earnings management by firms using IFRS compared to firms utilizing local GAAP's. This lower earnings management by IFRS reporting firms is observed for both the use of discretionary accruals to manage earnings upwards and earnings smoothing. On the value relevance of financial statements, this study first, finds that accounting reports are value relevant in all African markets examined. In addition, IFRS adopted countries and those harmonizing closely with IFRS are found to have the highest value relevance. Furthermore, test of difference in value relevance in South Africa between IFRS and South African GAAP reporting firms shows significantly higher value relevance for IFRS accounting information. -- Abstract.