The preparedness of companies to adopt International Financial Reporting Standards: Portuguese evidence

Guerreiro, Marta Alexandra Silva; Rodrigues, Lúcia Lima; Craig, Russell

doi:10.1016/j.accfor.2007.11.001

Cited by 60 publications

(48 citation statements)

References 20 publications

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“…Institutional theory posits that organisational pressures influence accounting and reporting (Carruthers ; Forgathy ; Burns ) through three types of institutional isomorphism: mimetic, coercive and normative (DiMaggio and Powell , Guerreiro et al ). Consistent with Dillard et al (), we argue that the size of a country's foreign markets and the prevalence of foreign ownership in national organisations influence a country's SARS.…”

Section: Review Of Literature and Hypotheses Developmentmentioning

confidence: 99%

Comparing the Strength of Auditing and Reporting Standards and Investigating their Predictors in Europe and Asia

Boolaky

Cooper

2015

Australian Accounting Review

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The World Economic Forum conducted an opinion survey to determine the strength of auditing and reporting standards (SARS) in 133 countries. It then assigned a score for SARS to each country as one of its global competitive indices. This is a unique dataset on SARS at country level. Using this dataset, this paper compares SARS scores for 72 countries (41 European and 31 Asian). A multi‐phase regression analysis is employed to empirically investigate the predictors of SARS using five sub‐models. Findings from the study support existing theory and add new findings to the auditing and reporting literature at a regional level. It suggests that there are nine predictors of SARS which are similar for both Europe and Asia but with different magnitude. In Asia the efficiency of the legal framework and the size of the foreign export market are also significant predictors of SARS compared to Europe.

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Section: Review Of Literature and Hypotheses Developmentmentioning

confidence: 99%

Comparing the Strength of Auditing and Reporting Standards and Investigating their Predictors in Europe and Asia

Boolaky

Cooper

2015

Australian Accounting Review

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“…; Tsalavoutas and Evans ; Guerreiro et al. ; Callao et al. ; Iatridis and Rouvolis ; Navarro‐García and Bastida ; Tsalavoutas ), and countries like the UK, Germany and Finland (Beuren et al.…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

“…However, in Portugal, the effects of IAS/IFRS adoption are under‐researched, and so far existing studies have focused on the preparedness of companies to adopt IFRS (Guerreiro ; Guerreiro et al. ) and accounting quality (Morais and Curto ). As shown in Panel A in Table , during the IFRS transition period, Portuguese listed companies had to follow the Committee of European Securities Regulators’ (CESR) disclosure recommendations, but only larger companies commercially internationalised, audited by Big 4 auditing firms, and with lower leverage did (Guerreiro ).…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

“…Prior research on the impact of IAS/IFRS adoption indicates that the level of preparedness of companies to adopt IFRS and the level of compliance with disclosure requirements in the transition process to IFRS were low (Sucher and Jindrichovska ; Guerreiro ; Tsalavoutas and Evans ; Guerreiro et al. ). Only larger companies with higher levels of commercial internationalisation, audited by Big 4 auditing firms (Guerreiro ; Guerreiro et al.…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

“…Only larger companies with higher levels of commercial internationalisation, audited by Big 4 auditing firms (Guerreiro ; Guerreiro et al. ), with strong debt and equity financing needs (Iatridis and Rouvolis, ), were better prepared to adopt IAS/IFRS and present higher levels of voluntary disclosure during the transition to IFRS. However, Tsalavoutas () found that industry sector, auditor type and changes in the 2004 shareholders’ equity/net profit as a result of the adoption of IAS/IFRS explain the levels of compliance with IAS/IFRS mandatory disclosure requirements.…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

See 2 more Smart Citations

Impairment Losses: The Impact of First‐time Adoption of the Accounting Standardisation System in Portugal

Oliveira

Azevedo

Oliveira

2018

Australian Accounting Review

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Portugal has been recognised as a code law country, with weak legal enforcement mechanisms and conservative accounting practices. However, since 2005, Portuguese companies have been changing their financial reporting practices to those based on common law institutional logic. In 2010, unlisted Portuguese companies began to apply a new set of accounting standards called the Accounting Standardisation System (Sistema de Normalização Contabilística -SNC) based on International Accounting Standards/International Financial Reporting Standards (IFRS). This paper seeks to analyse the impact of the first-time adoption of the SNC with regard to the accounting treatment of impairment losses. It is found that, to mitigate political costs associated with their public visibility, larger companies present more credible financial statements that reflect their overall true financial and economic condition. This study is a valuable contribution to both users of financial information and domestic standard setters to help them understand and improve the impact of accounting standards. Consistent with Khalil and Simon (2014), it also contributes to the debate on the optimal flexibility permitted by IFRS to improve reporting quality and reduce earnings management.

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IFRS adoption: A costly change that keeps on costing

Pawsey

2017

Accounting Forum

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The preparedness of companies to adopt International Financial Reporting Standards: Portuguese evidence

Cited by 60 publications

References 20 publications

Comparing the Strength of Auditing and Reporting Standards and Investigating their Predictors in Europe and Asia

Comparing the Strength of Auditing and Reporting Standards and Investigating their Predictors in Europe and Asia

Impairment Losses: The Impact of First‐time Adoption of the Accounting Standardisation System in Portugal

IFRS adoption: A costly change that keeps on costing

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