The impact of IFRS adoption on value relevance accounting information: Evidence from Indonesia

Sun, Yan; Sari, Nila Nova; Havidz, Shinta Amalina Hazrati

doi:10.1088/1755-1315/729/1/012113

Cited by 4 publications

(5 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The return on equity and thus the cash flow of Nigerian industrial companies increased. Two studies Sun et al, [8] Kyeremeh et al, [9] agreed that there is a clear impact of the International Financial Reporting Standards (IFRS) on the value relevance of accounting…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

Chouaibi,

Mutar

2024

AJEBA

View full text Add to dashboard Cite

The study aimed to identify the impact of the International Financial Reporting Standards (IFRS) on the value Relevance of accounting information in a sample of banks listed on the Iraq Stock Exchange. The study dealt with the method of analyzing the information content of the annual financial statements published on the Iraq Stock Exchange website, which number (46). Banks. (15) Banks were chosen as a sample for the study for the period (2012-2021). This sample was determined according to two basic conditions: the availability of financial statements for the year 2021 and the banks’ continuation of disclosing their data for the specified years without interruption. The independent variable was measured by financial reporting standards. The international standard (IFRS) was set at a value of (1.0), and the second variable (value Relevance) was measured using the model (Ohlson, 1995). Data analysis was also conducted through the use of statistical methods and tools and the statistical program (stata), and the study concluded that there is a relationship there is a positive moral significance between the application of International Financial Reporting Standards (IFRS) and the value Relevance of published accounting information. This means that the greater the trend towards adopting international financial reporting standards is accompanied by an increase in the levels of value Relevance of accounting information. The study recommended the necessity the Central Bank of Iraq obligates banks listed on the Iraqi Stock Exchange to comply with the requirements of international financial reporting standards, which in turn reduces information asymmetry by disclosing Relevance accounting information to current and prospective investors.

show abstract

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

Chouaibi,

Mutar

2024

AJEBA

View full text Add to dashboard Cite

show abstract

“…In light of the escalating complexity surrounding financial reporting, it has become indispensable for companies to provide reports that are both detailed and easily comprehensible (Do et al, 2019). By adhering to this standard, companies ensure that investors, creditors, and other stakeholders can access the information necessary for making informed decisions (Sun et al, 2021). Moreover, IFRS 17 promotes transparency in financial reporting, fostering trust between companies and their stakeholders (Bedford et al, 2022).…”

Section: Ifrs 17 and Understandability Of The Financial Reportsmentioning

confidence: 99%

“…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). Additionally, companies are obligated to disclose any significant changes in their financial position, performance, and cash flows (Ozili and Outa, 2019).…”

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

View full text Add to dashboard Cite

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.

show abstract

“…Findings indicate that IFRS adoption decreases income smoothing and increases accounting conservatism. Sun, Sari, and Havidz (2021) employ panel data of 22 banks to examine the impact of IFRS adoption on the value relevance of accounting information in Indonesia. They establish that IFRS adoption increases the value relevance of earnings.…”

Section: Ifrs Adoption and Accounting Information Qualitymentioning

confidence: 99%

International Financial Reporting Standards, Board Governance and Accounting Quality: Preliminary Ghanaian Evidence

Oppong

Bruce-Amartey

2022

102

View full text Add to dashboard Cite

IFRS adoption’s effect and board governance on accounting quality from Ghanaian perspective was examined using OLS technique between a seven-year periods (2013-2019). From the study, IFRS adoption negatively impacts accounting quality in an insignificant manner. The insignificant nexus was due to lax implementation of regulations by institutions with IFRS and incentive-performance tied schemes presented to managers. Additionally, all but profitability and institutional ownership have positively significant impact on accounting quality whilst board governance negatively affect accounting quality though not statistically significant. Finally, moderating the role of board governance on IFRS - accounting quality relation, evidence established from the regression is that board governance does not moderate relationship between IFRS adoption and accounting quality using discretionary accruals. Our study captured effective corporate governance practices using composite board governance index to moderate effect of IFRS on the nexus between board governance and accounting quality serving as central motivation to contribute to literature.

show abstract

The impact of IFRS adoption on value relevance accounting information: Evidence from Indonesia

Cited by 4 publications

References 17 publications

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

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

International Financial Reporting Standards, Board Governance and Accounting Quality: Preliminary Ghanaian Evidence

Contact Info

Product

Resources

About