IFRS fair value measurement and accounting policy choice in the United Kingdom and Australia

Cairns, David; Massoudi, Dianne; Taplin, Ross; Tarca, Ann

doi:10.1016/j.bar.2010.10.003

Cited by 128 publications

(87 citation statements)

References 40 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Excluding smaller European countries provides a fairer and more useful comparison of US GAAP and IFRS as including many smaller European countries are of less interest to international investors. Larger companies have greater influence on equity markets (Cairns et al, 2011), greater attention to compliance with IFRS and are of more importance to the global investor community (Chaplinski & Ramanchad, 2000;Wu & Kwok, 2002). Thus the 50 largest companies (by market capitalization) were selected in each country, after excluding companies in the financial sector.…”

Section: Methodsmentioning

confidence: 99%

“…Following the implementation of IFRS, the issue of harmonization has moved in two different directions: 1) to assess the differences between IFRS and local GAAP, conducting empirical research to demonstrate the benefits arising from the use of IFRS in terms of improved quality and transparency of information in the financial statements (Prather-Kinsey & Shelton 2005;Soderstrom & Sun 2007;Barth, Landsman, & Lang, 2008;Beattie, Fearnely, & Hines, 2008;Daske, Hail, Leuz, & Verdi, 2008;Rahaman, Yammeesri, & Perera, 2010;Phillips, Drake, & Luehlfing, 2010;Armstrong, Guay, & Weber, 2010;De Franco et al, 2011), 2) to investigate the possible continued existence of differences in accounting policies or choices despite respecting the same accounting rules (Nobes, 2006;Kvaal & Nobes, 2010;Nobes, 2011;Jones & Finley, 2011;Kvaal & Nobes, 2012;Nobes & Stadler, 2013;Cairns, Massoudi, Taplin, & Tarca, 2011). …”

Section: Literature Reviewmentioning

confidence: 99%

“…Van der Tas (1988) introduced indices to measure the extent of comparability (harmony) in the financial statements of companies and since then there has been significant improvements in methods, including criticism of existing indices and development of new indices (Cooke, 1989;Tay & Parker, 1990;Herrman & Thomas 1995;Archer, Delvaille, & McLeay, 1995;Lainez et al 1996, Archer, Delvaille, & McLeay, 1996Krisement, 1997;McLeay, et al 1999, Canibano & Mora 2000Aisbitt, 2001). This study uses the flexible framework of indices called the T index (Taplin, 2004;Astami et al, 2006) which has been extended to incorporate statistical inference techniques to allow testing of hypotheses (Taplin, 2010) and sophisticated practices to deal with previous criticisms of indices (Taplin, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Comparability of Company Accounts Using IFRS and US GAAP: Empirical Evidence of European and US Financial Statements

Taplin¹,

Verona²

2016

IJBM

View full text Add to dashboard Cite

Purpose-The main objective of this study is to provide a judgment on the comparability of financial statements prepared under IFRS and US-GAAP. We developed two research questions for evaluating comparability within Europe (IFRS) and within the US (US GAAP) and for testing whether comparability is higher or lower when the US companies are included with the European countries.Design/Methodology/Approach-The T index framework was used to summarize the level of comparability for 13 accounting items using data from 250 companies.Findings-Empirical results are mixed. Of 13 accounting items considered, international comparability is significantly lower for 7 items and significantly higher for 4 items when the US companies are included. Furthermore, comparability amongst companies using IFRS is not consistently higher or lower than comparability amongst companies using US GAAP.Practical implications-Answers to the research questions may provide useful suggestions for IASB's current policy direction towards global accounting standards convergence, and in particular for the IASB-FASB convergence project. The results also have implications for companies or countries considering shifting to IFRS or US GAAP.Research limitations/implications-Lack of comparability within countries, rather than between countries, suggests a need to focus on reducing options within standards rather than on differences between standards or countries.Originality value-Our empirical results show that in most cases lack of comparability may be driven by options within a standard rather than by explicit differences between standards.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Comparability of Company Accounts Using IFRS and US GAAP: Empirical Evidence of European and US Financial Statements

Taplin¹,

Verona²

2016

IJBM

View full text Add to dashboard Cite

show abstract

“…listed organisations, which are bound to more extensive disclosure due to their ownership and size 6 . These organisations also have important influence on equity markets (Cairns et al, 2011). It can, therefore, be expected that these organisations will (voluntarily) disclose more information regarding their intellectual capital in comparison with private organisations 7 .…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations

Stropnik

Korošec

Tominc

2017

Naše Gospodarstvo/Our Economy

View full text Add to dashboard Cite

The existing empirical research into the association between intellectual capital disclosures by organisations and the cost of debt is scarce or is based solely on the samples of the (large) listed organisations. Since agency issues between management/owners and lenders exist also in (large) private organisations whose financing is greatly dependent on loans and whose audited annual reports can be a source of additional information for external users, we performed an empirical research to find the answer to the question whether the level of intellectual capital disclosure (as a whole and of its sub-categories) of organisations is associated with the cost of their debt capital. Our study was performed on a sample of private Slovenian organisations with audited annual reports. The results of our research did not reveal that lenders would take into account intellectual capital disclosures by Slovenian private audited organisations as the information about the potential for their future cash flows when deciding on the cost of debt issued to these organisations.

show abstract

“…One of the expectations of an IFRS implementation is to achieve the comparability of finan cial statements, which, in turn will facilitate international transactions and minimize exchange costs (Cairns et al 2011, Phuong and Nguyen 2012, Yip and Young 2012.…”

Section: Prior Literature and Hypotheses Developmentmentioning

confidence: 99%

Audit Committee Independence and a Contracting Perspective on Goodwill Impairment: Singaporean Evidence

Majid

2017

Business: Theory and Practice

View full text Add to dashboard Cite

Abstract. This study examines factors influencing and constraining the decision to recognize zero goodwill impairment in a sample of 52 Singaporean listed firms from 2010-2012. Using binary logistic regressions, the results reveal that firms that are approaching violation of their debt covenants have a higher likelihood of exercising the recognition choice, while a higher proportion of audit committee independence constrains this choice. The policy implication of this study is that to improve the quality of the financial statements, the relevant authorities need to monitor firms' reporting incentives closely. This study contributes to the literature on IFRS by providing evidence that supports the applicability of the debt hypothesis in explaining the decision of Singaporean listed firms to recognize zero goodwill impairment.

show abstract

IFRS fair value measurement and accounting policy choice in the United Kingdom and Australia

Cited by 128 publications

References 40 publications

Comparability of Company Accounts Using IFRS and US GAAP: Empirical Evidence of European and US Financial Statements

Comparability of Company Accounts Using IFRS and US GAAP: Empirical Evidence of European and US Financial Statements

The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations

Audit Committee Independence and a Contracting Perspective on Goodwill Impairment: Singaporean Evidence

Contact Info

Product

Resources

About