Adoption of International Financial Reporting Standard: A Literature Review

Abdul, Ghani Faiyyaz; Abdullah, Malik

doi:10.54536/ajebi.v1i3.586

Cited by 3 publications

(2 citation statements)

References 12 publications

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“…Such information holds paramount importance for investors and other stakeholders, enabling them to make well-informed decisions (Lawal et al, 2020). The verifiability of financial reports is crucial in facilitating informed decision-making for investors and other stakeholders (Abdul and Abdullah, 2022). IFRS 17 necessitates companies to furnish accurate and reliable information pertaining to their financial position, performance, and cash flows (Sun et al, 2021).…”

Section: Ifrs 17 and Verifiability Of The Financial Reportsmentioning

confidence: 99%

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Hemant Kumar, Dr. Ranjul Rastogi

2023

tjjpt

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Purpose: Investigating the perspectives of finance professionals on the influence of Implementing IFRS 17 Insurance Contracts on the quality of financial report. Design and Methodology: This study utilized a self-administered questionnaire to collect data from finance professionals employed in insurance companies. The survey samples were drawn from the target population using a combination of conventional and snowball sampling techniques. The study and survey were conducted in India. A total of 532 questionnaires were distributed, resulting in 237 received responses. Out of these, 231 responses were considered complete and used for further data analysis. Findings/Results: The study's findings indicate that the application of IFRS 17 will result in a substantial impact on the relevance, faithful representation, comparability, understandability, verifiability, and timeliness of financial reports. Furthermore, it was found that implementing IFRS 17 enables investors and decision-makers to make informed decisions. Suggestions: This study carries implications for insurance companies and policymakers, particularly regarding the significance of IFRS 17 as a major accounting change in the insurance industry in recent decades. It underscores the importance for insurance companies and policymakers to gain a comprehensive understanding of the business and technical aspects associated with IFRS 17. By aligning their finance transformation programs with IFRS 17 compliance, insurance companies can efficiently and strategically achieve compliance while maximizing the benefits of the new standard. Originality/Value: This study contributes to the existing literature on IFRS 17 by developing a unique conceptual framework. Building upon the variables utilized in the study by Dahiyat and Owais (2021), the present study introduces a new independent variable, enabling investors and participants to make decisions. Consequently, this study brings significant novelty by incorporating seven dependent variables. The findings presented in this paper contribute to the understanding of IFRS 17 and its implications. Furthermore, this study holds particular significance as it is the first empirical investigation conducted in the global context, providing valuable insights into the implementation of IFRS 17. Limitations/Implications: Due to the novelty of the topic and limited research in this area, there is a scarcity of comparative studies available. Moreover, the availability of experienced financial professionals well-versed in the impact of IFRS 17 is limited, as they are still in the process of learning and adapting to the new standard.

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Section: Ifrs 17 and Verifiability Of The Financial Reportsmentioning

confidence: 99%

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Hemant Kumar, Dr. Ranjul Rastogi

2023

tjjpt

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“…Some researchers have proposed models and frameworks to enhance understanding of IFRS adoption and its impact. Abdul and Abdullah (2022), for instance, discuss the emergence of IFRS as a means to achieve financial reporting uniformity across borders. They propose a model that integrates IFRS constructs with foreign direct investment (FDI), robust financial information reporting, transparency, and comparability.…”

Section: Literature Reviewmentioning

confidence: 99%

An Analysis of the Factors Affecting the Implementation of Cambodian Financial Reporting Standard for Not-for-Profit Entities

2023

ijafr

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The adoption of the Cambodia Financial Reporting Standard (CFRS) for Not-For-Profit Entities (NFPEs) is crucial for both the entities themselves and the Accounting and Auditing Regulator (ACAR). Despite the large number of registered not-for-profit entities in Cambodia, not all of them have embraced the use of CFRS. This study aims to analyze the factors that influence the likelihood of adopting CFRS for NFPEs through a logit regression model. Six factors are identified, including three observed variables (entity size, fear of penalties, and ease of accessing funds) and three latent variables (valuation of accounting items, entities' readiness, and consistency with tax regulations). Data was collected from 109 entities. The empirical findings reveal that five out of the six factors are statistically significant in explaining the likelihood of entities adopting CFRS for NFPEs. However, the entities' readiness to adopt CFRS was found to be statistically insignificant. The estimated parameter values for the significant factors align with expectations. The Pseudo-R2 suggests that approximately 61.8 percent of the variation in the dependent variable can be attributed to the independent variables. It is important for not-for-profit entities and the ACAR to consider these significant factors when promoting the adoption of CFRS for NFPEs. Future research could further investigate the reasons behind the lack of significance in the entities' readiness factor and explore additional factors that may influence the likelihood of CFRS adoption.

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Does culture still matter post-IFRS?

Makni Fourati,

Zalila,

Alqatan

2024

JFRA

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Purpose This study aims to examine the impact of culture on earnings management after changing to International Financial Reporting Standards (IFRS). Design/methodology/approach The study’s sample selection comprises all publicly listed firms in 25 countries between 2000 and 2017 from DataStream database with cultural dimensions ratings from Hofstede et al. (2010). The initial sample contained 2,451 firms. Findings This study provides evidence that the interaction between national culture and IFRS adoption remains influential in explaining differences in the magnitude of earnings management behavior across countries. Originality/value This study higlights how IFRS and the cultural values interact with each other and affect earnings quality. In particular, the authors provide evidence on the relationship between individualism, uncertainty avoidance, power distance and masculinity of national culture and earnings management and, primarily, find that national culture significantly influences the decisions of managers after adopting IFRS.

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Adoption of International Financial Reporting Standard: A Literature Review

Cited by 3 publications

References 12 publications

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

An Analysis of the Factors Affecting the Implementation of Cambodian Financial Reporting Standard for Not-for-Profit Entities

Does culture still matter post-IFRS?

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