An analysis of the effect of mandatory adoption of IAS/IFRS on earnings management

Zéghal, Daniel; Chtourou, Sonda; Sellami, Yosra Mnif

doi:10.1016/j.intaccaudtax.2011.06.001

Cited by 139 publications

(104 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Accordingly, Barth et al (2008) conducted a study on 21 developed and emerging countries (which included Switzerland, China and Germany, among others), their findings indicate that the implementation of IFRS is negatively associated with EM. Along these same lines, Zéghal et al (2011) found that in the case of France, for those companies with good levels of corporate governance that depend on foreign financial markets, the adoption of IFRS is negatively related to EM. In the case of Brazil, Pelucio-Grecco et al (2014) show that the implementation of full IFRS plays a restrictive role on EM in listed companies.…”

Section: Review Of the Literature And Proposal Of The Hypothesesmentioning

confidence: 89%

Impact of IFRS on the quality of financial information in the United Kingdom and France: Evidence from a new perspective

Peña

Franco

2017

View full text Add to dashboard Cite

Findings: Firm size influences the impact of IFRS in the UK, and the financial information of larger firms seems to have improved after IFRS adoption. In the case of France, the results do not support any improvement in the quality of the financial information after IFRS were put in place. Research limitations/implications:This research applies a new methodological approach to study the impact of IFRS adoption, but additional inquires on the subject are surely required.-850-Intangible Capital -https://doi.org/10.3926/ic.939Practical implications: Certain features of the countries, such as the Common Law legal system and enforcement, could explain why the quality of the financial information for large firms has increased following the adoption of IFRS. It seems that the implementation of IFRS has given investors additional elements with which to ascertain a firm's ability to generate future cash flows. Social implications:The adoption of IFRS, by itself, is not enough to improve the quality of financial information. Thus, regulators in countries adopting IFRS should consider additional reforms to ensure that the desired results are achieved.Originality/value: This work overcomes the methodological design problems of previous research, such as sample selection bias, the inclusion of observations close to the year of mandatory adoption, the heterogeneity of each country and the size of the analyzed companies.To the best of our knowledge, this research is the first to test the effect of IFRS adoption in the European context, using the relation between idiosyncratic risk and the opacity of financial reports.

show abstract

Section: Review Of the Literature And Proposal Of The Hypothesesmentioning

confidence: 89%

Impact of IFRS on the quality of financial information in the United Kingdom and France: Evidence from a new perspective

Peña

Franco

2017

View full text Add to dashboard Cite

show abstract

“…Studies find that IFRS adoption or convergence is associated with accounting quality in Australia (Chua et al, 2012;Elias, 2012) and the France (Zéghal et al, 2011). Adopting IFRS affects the financial position of a publicly reporting accounting entity.…”

Section: Effects Of Adopting Ifrs On Financial Statements and Accountmentioning

confidence: 99%

Empirically Investigating Saudi Arabian Accountants’ Readiness to Implement IAS 2

Al-Mousa¹,

Al-Adeem²

2017

FMIR

View full text Add to dashboard Cite

This study focuses on practicing accountants in Saudi Arabia to examine their readiness to adopt the mandatory International Financial Reporting Standards (IFRS). More specifically, it investigates the International Accounting Standard for Inventories, an indicator for accountants' understanding of IFRS requirements. To do so, we conduct an online questionnaire survey, which reveals that 52.27% accountants may not be ready for IFRS implementation. The lack of knowledge about certain IAS 2 requirements raises further concerns about accountants' readiness to implement more complicated IFRS, some of which have no comparable local financial accounting standards. These findings draw attention to the effectiveness of IFRS training courses. Further, 57.20% accountants, all of whom reviewed the Saudi Organization for Certified Public Accountants' (SOCPA) website, provided appropriate answers, indicating SOCPA's significant contribution toward the spreading of awareness and knowledge about IFRS. Our findings have implications for practitioners and accounting regulators as well as bodies responsible for standardizing accounting practices in Saudi Arabia. In particular, they suggest steps necessary to increase accountants' readiness for IFRS adoption, which became mandatory since January 1, 2017, for all listed companies. In conclusion, this study serves as a foundation for future research on the topic, which can be extended to the realm of auditors, and obstacles confronting accountants in IFRS implementation.

show abstract

“…6, No. 11; A larger value of discretionary accruals represents higher earnings management (Cai et al, 2014;Zéghal et al, 2011).…”

Section: Discretionary Accruals (Da)mentioning

confidence: 99%

“…For our sample, we examine the directional values of discretionary accruals (PDA / NDA) and their absolute value |DA|. (Houque, Van Zijl, Dunstan, & Karim, 2012;Zéghal et al, 2011;Landsman et al, 2012). The absolute value of discretionary accruals is presented in the previous literature as a measure of the extent of managerial discretion.…”

Section: Discretionary Accruals (Da)mentioning

confidence: 99%

See 1 more Smart Citation

Accounting Manipulations and IFRS: Evidence from French Companies

Nouri¹,

Abaoub²

2014

IJEF

View full text Add to dashboard Cite

This paper examines the impact of mandatory adoption of international accounting standards on the income smoothing and earning management. Using a simple of French firms indexed in the CAC all tradable for a period of ten years (2000-2009), we find convincing evidence that the implantation of IFRS contributed to less income smoothing and earning management compared to the local accounting standards, even during the recent economic crisis. Less earning manipulation assures higher levels of reliability information.

show abstract

An analysis of the effect of mandatory adoption of IAS/IFRS on earnings management

Cited by 139 publications

References 26 publications

Impact of IFRS on the quality of financial information in the United Kingdom and France: Evidence from a new perspective

Impact of IFRS on the quality of financial information in the United Kingdom and France: Evidence from a new perspective

Empirically Investigating Saudi Arabian Accountants’ Readiness to Implement IAS 2

Accounting Manipulations and IFRS: Evidence from French Companies

Contact Info

Product

Resources

About