Adoption of IFRS in Brazil: Effects on Accounting Conservatism

Sousa, Erivelto Fioresi de; Sousa, Anderson Fioresi de; Demonier, Gladyson Brommonschenkel

doi:10.17524/repec.v10i2.1290

Cited by 6 publications

(6 citation statements)

References 25 publications

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“…It takes a long process to eliminate accounting conservatism. The finding of this study is in line with [16] reported that no difference changes of accounting conservatism before and after IFRS mandatory adoption period.…”

Section: Analysis Of Ifrs Convergence On Accounting Conservatism Levelsupporting

confidence: 92%

The Effect of IFRS Convergence, Independent Commissioner Proportion and Commissioners Board Size on Accounting Conservatism Level

Yunina¹,

Yunita²,

Murhaban³

et al. 2019

Proceedings of the Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January

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As for the objective of this study was to know the partial influence of IFRS convergence, proportion of independent commissioner, and size of the board of commissioners to level of accounting conservatism. The number of sample used in this research were 32 observation at Food and Beverages companies listed on Indonesian Stock Exchange from 2012-2015. The sample of this research was taken using purposive sampling. The method used in data analyzing was multiple linear regression analysis. The result indicated that partially, IFRS convergence influenced positively and significantly to the level of accounting conservatism with significance level 0.015. Proportion of independent commissioner did not influence on the level of accounting conservatism with significance level 0.438. While size of commissioner board influenced negatively and significantly on the level of accounting conservatism with significance level 0.049. The researcher suggested that (1) management should consider exactly on the influencing factors on accounting conservatism, (2) further researcher should improve the other factors influencing on the level of accounting conservatism such as leverage, bonus plan, debt covenant, political cost, etc.

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Section: Analysis Of Ifrs Convergence On Accounting Conservatism Levelsupporting

confidence: 92%

The Effect of IFRS Convergence, Independent Commissioner Proportion and Commissioners Board Size on Accounting Conservatism Level

Yunina¹,

Yunita²,

Murhaban³

et al. 2019

Proceedings of the Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January

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“…This aspect of analysis is supported by previous studies which state that there are no significant changes in conservatism following the adoption of the IFRS (Juanda, 2012;Hikmah, 2013;Sousa et al, 2016;Ghani et al, 2017;Prayanthi & Pantow, 2018). Based on this, the following hypothesis is proposed: H1.…”

Section: Hypotheses Developmentsupporting

confidence: 62%

“…Other studies have shown that the IFRS increases conservatism (Gassen et al, 2006;Barth et al, 2008;Lin et al, 2012;Bertin & Moya, 2013;Pulungan, 2014;Dobre et al, 2015). Other studies have even failed to adequately measure and quantify conservatism levels following the adoption of the IFRS (Juanda, 2012;Hikmah, 2013;Sousa et al, 2016;Ghani et al, 2017;Prayanthi & Pantow, 2018).…”

Section: Introductionmentioning

confidence: 99%

The Accounting Conservatism of the Adoption of IFRS in Indonesia

2018

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Objective - The Indonesian Accounting Standard Authority has required companies to adopt the International Financial Reporting Standard (IFRS) since its adoption in 2012. The new standard emphasizes relevance, while the previous standard focused on conservative issues. While the IFRS does not specifically aim to reduce conservatism, this aspect is no longer the emphasis of the new standard. There are concerns about whether the IFRS reduces conservatism and the research on this issue are still uncertain. Hence, this study aims to determine the level of conservatism in the period following the adoption of the IFRS. The study also aims to examine the outcome of the adoption of the IFRS since its adoption in Indonesia in 2012. Methodology/Technique - Using the accounting conservatism model developed by Basu (1997), the authors compare firm conservatism before and after the adoption of the IFRS. The sample includes companies listed on the Indonesian Stock Exchange between 2006 and 2016. There are 3.742 firm-years that consist of 394 companies from various industrial sectors. The data is analyzed using a Pooled Least Square method. Findings - The results show that conservatism was high prior to the adoption of the IFRS. Further, accounting earnings are more sensitive to the negative return than to the positive return before the adoption of the IFRS. However, in the post-adoption period, sensitivity to negative return has decreased. This means that the adoption of the IFRS has reduced levels of conservatism. The Indonesian Accounting Standard Authority may rely on these results to evaluate the mandatory policy of IFRS. Novelty - This study explores the prevalence of conservatism within firms prior to, and following, the adoption of the IFRS using longitudinal data. Type of Paper Empirical Keywords: Conservatism; Earning Quality; IFRS Adoption; Indonesia; Pre and Post-adoption. JEL Classification: M41, M48.

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“…A amostra inicial compreende empresas brasileiras de capital aberto no período de 2011 a 2021. Consideramos o período pós-adoção das normas IFRS, uma vez que estudos anteriores na área evidenciam que o processo de convergência às normas internacionais propiciou uma melhora na qualidade da informação contábil (Pelucio-Grecco, Geron, Grecco & Lima, 2014; Sousa, Sousa & Demonier, 2016).…”

Section: Descrição Dos Dadosunclassified

Can Dividend Payments Mitigate the Influence of Covid-19 Crisis on Earnings Management?

Azevedo¹,

Tortoli²,

Stanzani³

et al. 2023

Contab. Vista & Rev.

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This paper examines whether dividend payments mitigate the influence of COVID-19 crisis on earnings management practices in Brazil. For this purpose, we use a sample of 264 Brazilian public firms from 2010 to 2021, applying System Generalized Method of Moments (SYS-GMM) regressions. Our main results indicate that, although firms are more prone to engage in earnings management practices during the COVID-19 period, the dividend payout ratio mitigates this influence on earnings management level. Therefore, we show that dividend payment can act as a substitute corporate governance mechanism in times of crisis, since it can reduce the occurrence of earnings management. Additional analyses also support this view, showing that big levels of dividends play a role in minimizing agency conflicts by reducing the level of earnings management. Hence, we contribute to the literature on dividend policy and earnings management, which calls for research to better understand the influence of dividends on earnings management practices in financial crises periods. Further, we shed light on how firms can use dividend policies as a substitute corporate governance mechanism to maintain or establish its reputation during periods of financial crises, benefiting investors, boards, creditors, financial analysts, and policymakers due the increase on the financial reporting quality.

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Adoption of IFRS in Brazil: Effects on Accounting Conservatism

Cited by 6 publications

References 25 publications

The Effect of IFRS Convergence, Independent Commissioner Proportion and Commissioners Board Size on Accounting Conservatism Level

The Effect of IFRS Convergence, Independent Commissioner Proportion and Commissioners Board Size on Accounting Conservatism Level

The Accounting Conservatism of the Adoption of IFRS in Indonesia

Can Dividend Payments Mitigate the Influence of Covid-19 Crisis on Earnings Management?

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