International financial reporting standards: What are the benefits?

Accounting and Business Research

Volumn 41, Issue 3, 2011, Pages 269-285

  Brown, Philip ^a  

^a UNIVERSITY OF WESTERN AUSTRALIA   (Australia)

Author keywords

Accounting standards; Analysts; Benefits of IFRS; Cost of capital; Forecasts; Globalisation of equity markets; Liquidity in equity markets

Indexed keywords

EID: 80054813266     PISSN: 00014788     EISSN: 21594260     Source Type: Journal    
DOI: 10.1080/00014788.2011.569054     Document Type: Conference Paper

References (78)

1. Agostino, M., Drago, D., and Silipo, D., 2010. The value relevance of IFRS in the European banking industry. Review of quantitativefinance and accounting, 20 (June), 1-21.
2. Ahmed, A.S., Neel, M.J., and Wang, D.D., 2010. Does mandatory adoption of IFRS improve accounting quality?, Preliminary evidence (10 June 2010). Available at SSRN: http://ssrn.com/abstract=1502909 [Accessed 30 November 2010].
3. Al-Shammari, B., Brown, P.R., and Tarca, A., 2007. An investigation of compliance with international accounting standards by listed companies in the Gulf Co-Operation Council member states. The international journal of accounting, 43 (4), 425-447.
4. Armstrong, C.S., etal., 2010. Market reaction to the adoption of IFRS in Europe. The accounting review, 85 (1), 31-61.
5. Ashbaugh, H. and Pincus, M.P.K., 2001. Domestic accounting standards, international accounting standards, and the predictability of earnings. Journal of accounting research, 39 (3), 417-434. (Pubitemid 33592226)
6. Atwood, T.J., et al., 2011. Do earnings reported under IFRS tell us more about future earnings and cash flows? (22 October 2010). Journal of accounting and public policy. 30 (2), 103-121.
7. Aussenegg, W., Inwinkl, P., and Schneider, G.T., 2008. Earnings management and local vs. international accounting standards of European public firms (1 September 2008). Available at SSRN: http://ssrn. com/abstract=1310346 [Accessed 30 November 2010].
8. Ball, R., Robin, A., and Wu, J.S., 2003. Incentives versus standards: properties of accounting income in four East Asian countries, and implications for acceptance of IAS. Journal of accounting and economics, 36 (1-3), 235-270. (Pubitemid 38161320)
9. Barth, M.E., Landsman, W.R., and Lang, M.H., 2008. International accounting standards and accounting quality. Journal of accounting research, 46 (3), 467-498.
10. Barth, M.E., et al.,2010. Are international accounting standards-based and US GAAP-based accounting amounts comparable? (1 April 2010). Rock Center for Corporate Governance at Stanford University Working Paper No. 78. Available at SSRN: http://ssrn.com/abstract=1585404 [Accessed 30 November 2010].
11. Bartov, E., Goldberg, S.R., and Kim, M., 2005. Comparative value relevance among German, U.S., and international accounting standards: a German stock market perspective. Journal of accounting, auditing and finance, 20 (2), 95-119. (Pubitemid 43530859)
12. Basu, S., 1997. The conservatism principle and the asymmetric timeliness of earnings. Journal of accounting andeconomics, 24 (1), 3-37. (Pubitemid 127163476)
13. Beisland, LA. and Knivsfla?, K.H., 2010. Have IFRSs changed how investors respond to earnings and book values? (31 August 2010). Available at SSRN: http://ssrn.com/abstract=1334533 [Accessed 30 November 2010].
14. Beuselinck, C., et al., 2009. Mandatory IFRS reporting and stock price informativeness (14 April 2009). Available at SSRN: http://ssrn.com/abstract= 1381242 [Accessed 30 November 2010].
15. Brown, P., Beekes, W., and Verhoeven, P., 2011. Corporate governance, accounting and finance: a review. Accounting & finance, 51, 96-172.
16. Brown, P. and Clinch, G., 1998. Global harmonisation of accounting standards: what research into capital markets tells us. Australian accounting review, 8 (1), 21-29.
17. Brown, P.R. and Tarca, A., 2007. Achieving high quality, comparable financial reporting: a review of independent enforcement bodies in Australia and the United Kingdom. Abacus, 43 (4), 438-473.
18. Brüggemann, U., et al., 2009. How do individual investors react to global IFRS adoption? (31 July 2009).
19. AAA 2010 Financial Accounting and Reporting Section (FARS) Paper. Available at SSRN: http://ssrn. com/abstract=1458944 [Accessed 30 November 2010].
20. Byard, DA., Ying, L., and Yu, Y., 2011. The effect of mandatory IFRS adoption onfinancial analysts' information environment (15 November 2010). Journal of accounting research. 49 (1), 69-96.
21. Cai, L., Rahman, A.R.R., and Courtenay, S.M., 2008. The effect of IFRS and its enforcement on earnings management: an international comparison (10 December 2008). Available at SSRN: http://ssrn.com/ abstract=1473571 [Accessed 30 November 2010].
22. Carlin, T.M., Finch, N., and Ford, G., 2007. Goodwill impairment - an assessment of disclosure quality and compliance levels by large listed Australian firms (January 2007). Available at SSRN: http://ssrn.com/ abstract=963078 [Accessed 30 November 2010].
23. Cascino, S. and Gassen, J., 2010. Mandatory IFRS adoption and accounting comparability (7 October 2010). Available at SSRN: http://ssrn.com/abstract= 1402206 [Accessed 30 November 2010].
24. Chalmers, K., Clinch, G., and Godfrey, J.M., 2010a. Changes in value relevance of accounting information upon IFRS adoption: evidence from Australia, Unpublished paper, Department of Accounting and Finance, Monash University.
25. Chalmers, K., et al., 2010b. Intangible assets, IFRS, and analysts earnings forecasts (1 October 2010). Available at SSRN: http://ssrn.com/ abstract=1722937 [Accessed 17 January 2011].
26. Chen, H., et al., 2010. The role of International Financial Reporting Standards in accounting quality: evi- dence from the European Union. Journal of international financial management & accounting, 21 (3), 220-278.
27. Christensen, H.B., Lee, E., and Walker, M., 2008. Incentives or standards: what determines accounting quality changes around IFRS adoption? (6 March 2008).
28. AAA 2008 Financial Accounting and Reporting Section (FARS) Paper. Available at SSRN: http://ssrn.com/abstract=1013054 [Accessed 30 November 2010].
29. Clarkson, P., etal., 2010. Theimpactof IFRSadoptiononthevaluerelevanceofbookvalueandearnings (23 May 2010). Available at SSRN: http://ssrn.com/abstract=1614362 [Accessed 30 November 2010].
30. Cole, V., Branson, J., and Breesch, D., 2010. The illusion of comparable European IFRS financial statements - the view of auditors, analysts and other users (March 2010). Available at SSRN: http://ssrn.com/ abstract=1521445 [Accessed 30 November 2010].
31. Commonwealth of Australia, 1997.Accounting Standards: buildinginternationalopportunitiesfor Australian business, Corporate Law Economic Reform Program Proposals for Reform: Paper No. 1. Canberra: Australian Government Publishing Service.
32. Daske, H., 2006. Economic benefits of adopting IFRS or US-GAAP - has the expected cost of equity capital really decreased? Journal of business finance & accounting, 33 (3-4), 329-373. (Pubitemid 43787604)
33. Daske, H. and Gebhardt, G., 2006. International Financial Reporting Standards and experts' perceptions of disclosure quality. Abacus, 42 (3-4), 461-498. (Pubitemid 44571044)
34. Daske, H., et al., 2008. Mandatory IFRS reporting around the world: early evidence on the economic consequences. Journal of accounting research, 46 (5), 1085-1142.
35. Daske, H., et al., 2009. Adopting a label: heterogeneity in the economic consequences of IFRS adoptions (31 October 2009). Available at SSRN: http://ssrn.com/abstract=1502413 [Accessed 1 December 2010].
36. De Fond, M., et al., 2009. The impact of IFRS adoption on US mutual fund ownership: the role of compar- ability (15 September 2009). SCU Leavey School of Business Research Paper No. 09-06. Available at SSRN: http://ssrn.com/abstract= 1473889 [Accessed 1 December2010].
37. Devalle, A., Onali, E., and Magarini, R., 2010. Assessing the value relevance of accounting data afterthe introduction of IFRS in Europe. Journal of international financial management & accounting, 21 (2), 85-119.
38. Eccher, EA. and Healy, P.M., 2000. The role of international accounting standards in transitional economies: a study of the People's Republic of China (June 2000). Available at SSRN: http://ssrn.com/abstract= 233598 [Accessed 1 December 2010].
39. Ernstberger, J., Hitz, J.-M., and Stich, M., 2010. Enforcement of accounting standards in Europe: empirical evidence for the two-tier mechanism in Germany (April 2010). Available at SSRN: http://ssrn.com/ abstract=1395729 [Accessed 1 December2010].
40. Ernstberger, J., Krotter, S., and Stadler, C., 2008. Analysts' forecast accuracy in Germany: the effect of different accounting principles and changes of accounting principles. Bu R business research, 1 (1), 26-53.
41. Florou, A. and Pope, P.F., 2009. Mandatory IFRS adoption and investor asset allocation decisions (18 March 2009). Available at SSRN: http://ssrn.com/abstract=1362564 [Accessed 1 December 2010].
42. Gassen, J. and Sellhorn, T., 2006. Applying IFRS in Germany: determinants and consequences (July 2006). Available at SSRN: http://ssrn.com/abstract= 906802 [Accessed 1 December 2010].
43. Gjerde, O., Knivsfla?, K.H., and Saettem, F., 2008. The value-relevance of adopting IFRS: evidence from 145 NGAAP restatements. Journal of international accounting, auditing and taxation, 17 (2), 92-112.
44. Goncharov, I. and Zimmermann, J., 2006. Do accounting standards influence the level of earnings manage- ment? Evidence from Germany (December 2006). Available at SSRN: http://ssrn.com/abstract=386521 [Accessed 1 December2010].
45. Goodwin, J., Ahmed, K., and Heaney, R.A., 2008. The effects of International Financial Reporting Standards on the accounts and accounting quality of Australian firms: a retrospective study. Journal of contempor- ary accounting and economics, 4 (2), 89-119.
46. Günther, N., et al., 2009. International Financial Reporting Standards and earnings quality: the myth of voluntary vs. mandatory adoption (2 June 2009). CEFS Working Paper No. 2009-09. Available at SSRN: http://ssrn.com/abstract=1413145 [Accessed 1 December2010].
47. Hail, L. and Leuz, C., 2007. Capital market effects of mandatory IFRS reporting in the EU: empirical evidence (15 October 2007). Available at SSRN: http://ssrn.com/abstract=1511671 [Accessed 1 December 2010].
48. Hope, O., Jin, J.Y., and Kang, T., 2006. Empirical evidence onjurisdictions that adopt IFRS. Journal of international accounting research, 5 (2), 1-20.
49. Horton, J. and Serafeim, G., 2008. Market reaction and valuation of IFRS reconciliation adjustments: first evidence from the UK. Review of accounting studies, 15 (4), 725-751.
50. Horton, J., Serafeim, G., and Serafeim, I., 2008. Does mandatory IFRS adoption improve the information environment? (5 September 2008). Harvard Business School Working Paper No. 1264101. Available at SSRN: http://ssrn.com/abstract=1264101 [Accessed 1 December2010].
51. Houqe, N., et al., 2010. The effect of investor protection and IFRS adoption on earnings quality around the world (14 January 2010). Finance and Corporate Governance Conference 2010 Paper. Available at SSRN: http://ssrn.com/abstract=1536460 [Accessed 1 December2010].
52. Howieson, B., 2010. GFC or KFC? How standard setters were battered and fried. Australian accounting review, doi: 10.11 11/j.1835-2561.2010.00115.x.
53. Hung, M. and Subramanyam, K.R., 2007. Financial statement effects of adopting international accounting standards: the case of Germany. Review of accounting studies, 12 (4), 623-657.
54. Jarva, H. and Lantto, A.-M., 2010. The information content of IFRS versus domestic accounting standards: evidence from Finland (28 September 2010). Available at SSRN: http://ssrn.com/abstract=1588087 [Accessed 1 December2010].
55. Jermakowicz, E.K., Prather-Kinsey, J.J., and Wulf, I., 2007. The value relevance of accounting income reported by DAX-30 German companies. Journal of internationalfinancial management & accounting, 18 (3), 151-191.
56. Jones, S. and Finley, A., 2010. Have IFRS made a difference to intra-country financial reporting diversity? The British accounting review, doi: 10.1016/j.bar.2010.10.004.
57. Kadri, M.H. and Zulkifli, M., 2008. Relationship between market value and book value of Malaysian firms under pre and post FRS (18 June 2008). Available at SSRN: http://ssrn.com/abstract=1440771 [Accessed 1 December2010].
58. Karamanou, I. and Nishiotis, G.P., 2009. Disclosure and the cost of capital: evidence from the market's reaction to firm voluntary adoption of IAS. Journal of business finance & accounting, 36 (7-8), 793-821.
59. Karampinis, N.I. and Hevas, D.L., 2010. Mandating IFRS in an unfavorable environment: the Greek experience (16 March 2010). Available at SSRN: http://ssrn.com/abstract=1572495 [Accessed 1 December 2010].
60. Katselas, D., 2010. Transparency and accounting standards. Thesis (Ph D). The Australian National University.
61. Kaytmaz Balsari, C., Ozkan, S., and Durak, M.G., 2010. Earnings conservatism in the pre- and post-IFRS adoption periods in Turkey: panel data evidence on the firm specific factors. Journal of accounting and management information systems, 9 (3), 403-421.
62. Kim, J.-B. and Shi, H., 2010. Voluntary IFRS adoption and stock price synchronicity: do analyst following and institutional infrastructure matter? (8 April 2010). Available at SSRN: http://ssrn.com/abstract= 1586657 [Accessed 1 December2010].
63. Kvaal, E. and Nobes, C.W., 2010. International differences in IFRS policy choice: a research note. Accounting and business research, 40 (2), 173-187.
64. Laux, C. and Leuz, C., 2009. The crisis of fair value accounting: making sense of the recent debate. Accounting, organizations andsociety, 34 (6-7), 826-834.
65. Leuz, C. and Verrecchia, R.E., 2000. The economic consequences of increased disclosure. Journal of accounting research, 38 (Suppl.), 91-124.
66. Li, S., 2010. Does mandatory adoption of International Financial Reporting Standards inthe European Union reduce the cost of equity capital? The accounting review, 85 (2), 607-636.
67. Meek, G.K. and Saudagaran, S.M., 1990. A survey of research on financial reporting in a transnational context. Journal of accounting literature, 9, 145-182.
68. Mercorelli, L.R., Michayluk, D., and Hall, A.D., 2008. Modeling adverse selection on electronic order- driven markets (16 March 2008). Available at SSRN: http://ssrn.com/abstract=1107049 [Accessed 17 January 2011].
69. Noreen, E. and Sepe, J., 1981. Market reactions to accounting policy deliberations: the inflation accounting case. The accounting review, 56 (2), 253-269.
70. Palea, V., 2009. The effects of the IAS/IFRS adoption in the European Union on the financial industry (9 October 2009). Available at SSRN: http://ssrn.com/abstract=1088712 [Accessed 2 December 2010].
71. Pope, P.F. and Mc Leay, S.J., 2011. The European IFRS experiment: objectives, research challenges and some early evidence. Accounting and business research, 41 (3), 233-266.
72. Saudagaran, S.M. and Meek, G.K., 1997. A review of research on the relationship between international capital markets and financial reporting by multinational firms. Journal of accounting literature, 16, 127-159.
73. Schiebel, A., 2007. Empirical value relevance of German GAAP and IFRS. Journal of economic and financial sciences, 1 (2), 141-170.
74. Shi, S. and Kim, J.-B., 2007. International Financial Reporting Standards, institutional infrastructures and costs of equity capital around the world (August 2007). Available at SSRN: http://ssrn.com/abstract= 984127 [Accessed 2 December 2010].
75. Van Tendeloo, B. and Vanstraelen, A., 2005. Earnings management under German GAAP versus IFRS. European accounting review, 14 (1), 155-180.
76. Wan Ismail, W.A., Dunstan, K.L., and Van Zijl, T., 2010. Earnings quality and the adoption of IFRS-based accounting standards: evidence from an emerging market (7 March 2010). Available at SSRN: http:// ssrn.com/abstract=1566634 [Accessed 2 December 2010].
77. Wang, J. and Yu, W., 2009. The information content of stock prices, reporting incentives and accounting standards: international evidence (March 2009). Available at SSRN: http://ssrn.com/abstract=1156738 [Accessed 2 December 2010].
78. Yu, G., 2009. Accounting standards and international portfolio holdings: analysis of cross-borderholdings following mandatory adoption of IFRS (30 June 2009). Available at SSRN: http://ssrn.com/abstract= 1430589 [Accessed 2 December 2010].