An ex ante analysis of change in reporting methods: the example of Joint Ventures

Demerens, Frédéric; Manh, Anne Le; Delvaille, Pascale; Paré, Jean-Louis

doi:10.3917/g2000.314.0065

Cited by 6 publications

(15 citation statements)

References 20 publications

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“…The comparison between the amounts reported by proportional consolidation and its estimates by the equity method also led the authors to predict the material effects of the change in certain consolidated financial statements' items and financial ratios. In a similar study (between 2008-2009, for listed entities of France, Germany, Spain, and the United Kingdom), Demerens et al (2014) also foresaw significant and larger effects than those anticipated by the IASB (2011i), in several accounting items and in DuPont's financial ratios.…”

Section: Rq5: Did the Entities Declare Effects Of Adopting Ifrs 11?mentioning

confidence: 74%

“…A prevision for the likely effects of the adoption of the new IFRS 10 and IFRS 11 were anticipated by IASB (2011h, 2011i), based on estimates (ex ante). Effective (ex post) effects (Demerens et al, 2014) are also important, usually supported in academic research. Attention to these topics was called by IASB with the public announcement of the PIR, in which the academic research could be important to take into consideration (IFRS Foundation, 2016), inviting the academia to contribute (IASB, 2011h, 2011i).…”

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

“…Priscilla and Ariyanto, 2014), developed in pre-adoption periods (e.g. Demerens et al, 2014;Leitner-Hanetseder and Stockinger, 2014), or used financial statements from 2013 and, accordingly, some effects were based on estimates (e.g. Mazars, 2014).…”

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

“…IASB, 2011i; BDO, 2013a) and those suggesting material effects on the adoption of IFRS 11 (e.g. Büdy-Rózsa, 2012; EFRAG, 2012a; Demerens et al, 2014;ESMA, 2014ESMA, , 2016Leitner-Hanetseder and Stockinger, 2014;Mazars, 2014). Accordingly:…”

Section: Rq4: Did the Adoption Of Ifrs 10 Have Materials Effects On Thmentioning

confidence: 99%

“…On IFRS 11, some authors claim effects on a few jointly controlled target agreements (e.g. IASB, 2011h; BDO, 2013a), but others claim effects in more cases and possibly materials (e.g Büdy-Rózsa 2012; Demerens et al, 2014;ESMA, 2014ESMA, , 2016Leitner-Hanetseder and Stockinger, 2014;Mazars, 2014).…”

Section: Introductionmentioning

confidence: 99%

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Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

Lopes

2019

MEDAR

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Purpose The purpose of this paper is to investigate how the adoption of IFRS 10 and IFRS 11 affected consolidated financial statements. Specifically, the paper explores whether entities adopted mandatorily or voluntarily both IFRS, whether expressly declared effects, whether considered those effects as material and whether those effects had impacts on selected items of financial statements and on selected financial ratios. Design/methodology/approach The research is an exploratory study using public entities from Germany, France and the UK. The majority of the data is manually collected from financial statements. Findings The results suggest that the adoption of the new IFRS 10 affected the composition of a large number of entity groups but that their financial information and economic-financial indicators do not present material changes. There is also evidence of a large and material impact on the changes in the classification and accounting for interests in arrangements under joint control through the new IFRS 11. The evidence thus suggests unequal effects of the adoption of IFRS 10 and IFRS 11 on the proportion of entities declaring materiality of effects, on the quantitative effects on selected items of financial statements, and on financial ratios. A comparison between the pre-adoption and post-adoption periods reveals that the majority of the effects are driven by the adoption of IFRS 11. Originality/value As far as is known this exploratory paper is the first presenting the effectiveness of adopting the most important standards under the “consolidation package” and opens an avenue for future research by academics, for future post-implementation reviews by IASB, and for analysis of peer reviews between accounting practitioners.

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Section: Rq5: Did the Entities Declare Effects Of Adopting Ifrs 11?mentioning

confidence: 74%

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

Section: Rq4: Did the Adoption Of Ifrs 10 Have Materials Effects On Thmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

Lopes

2019

MEDAR

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Did the switch to IFRS 11 for joint ventures affect the value relevance of corporate consolidated financial statements? Evidence from France and Italy

Gavana

Gottardo

Moisello

2020

Journal of International Accounting, Auditing and Taxation

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The Value Relevance of Accounting Numbers in Presence of the Equity Method Before and After IFRS 11: Evidence from France

Pourtier

Bardinet-Evraert

Darmendrail

2023

Accounting in Europe

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An ex ante analysis of change in reporting methods: the example of Joint Ventures

Cited by 6 publications

References 20 publications

Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

Did the switch to IFRS 11 for joint ventures affect the value relevance of corporate consolidated financial statements? Evidence from France and Italy

The Value Relevance of Accounting Numbers in Presence of the Equity Method Before and After IFRS 11: Evidence from France

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