Effects of IFRS on Accounting Information Quality: Evidence for Brazil

Abstract

Understanding the effects of the International Financial Reporting Standards (IFRS) on accounting quality is fundamental for policy makers and financial market players in general. This paper analyzes whether the adoption of IFRS in Brazil has had the impact on accounting informational quality. To this end, a differentiated empirical strategy was adopted based on two steps: first, a matching of voluntary adopters of norms and non-adopters by propensity score is performed to construct control groups. This is important to mitigate the selection bias problem. Second, the measures of value relevance, timeliness and conservatism of accounting information are estimated using panel data models. The period of analysis extends from 2006 to 2010, with annual information for the first stage and quarterly for the second. The results show a positive impact of international standards on the value relevance. However, for the measures of timeliness and conservatism, sufficient evidence was not found to indicate any impact on the group of companies evaluated.

Qualitative Characteristics as a Reliable Tool for Assessing the Quality of Accounting Information: An Overview Study

“…Several studies have discussed the characteristics of accounting information such as Beest et al (2009), Jing and Harbin: School Of Management, Harbin Institute Of Technology, P.R.China. (2007), Obaidat (2007), Kallob and Buhaisi (2013), Kythreotis (2014), Tsoncheva (2014), Yurisandi and Puspitasari (2015), Junior et al (2017), Nobes and Stadler (2015), Mbobo and Ekpo (2016), AL-Shatnawi (2017), Al-dmour et al (2017), Mbawuni (2019. Jonas and Blanchet (2000) developed a generally acceptable framework between management, auditors and audit committees to assess the quality of inancial reports.…”

“…Similarly, Junior et al (2017) analyzed whether the adoption of IFRS has had an effect on the accounting information quality in brazil, the results revealed a positive impact of IFRS on the value relevance; and not found suf icient evidence toward timelines and conservatism Nobes and Stadler (2015) investigated the use of qualitative characteristics by company managers to assist them in making decisions by using publicly available data. The study found that comparability was more used, especially comparison regarding the type of industry, then that relevance, faithful representation, and understandability were important.…”