Attribute differences between U.S. GAAP and IFRS earnings: An exploratory study

Meulen, Sofie Van der; Gaeremynck, Ann; Willekens, Marleen

doi:10.1016/j.intacc.2007.04.001

Cited by 95 publications

(20 citation statements)

References 46 publications

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“…Since prior research on the effects of IFRS on earnings quality leads to contradictory conclusions and given that they depend on country specific and institutional factors, solid conclusions in a different context can not be drawn (van der Meulen et al, 2007).…”

Section: Ifrs and Earnings Qualitymentioning

confidence: 99%

“…Additionally, Jeanjean, and Stolowy (2008) found that IFRS adoption did not have an effect on earnings management in some countries and in specific situations earnings management even increased. There is even evidence that US GAAP provides higher quality reporting information compared to IFRS (van der Meulen et al, 2007). Opponents of IFRS adoption for the foreign issuers also argue that by using IFRS in the US, the comparability of financial statement information furthermore decreases.…”

Section: Consequences Of Ifrs Adoption: Foreign Issuersmentioning

confidence: 99%

“…For instance, this research only examined attributes from a category of accounting-based earnings attributes, but stronger evidence could be obtained by combining the analysis with market-based earnings attributes, such as timely loss recognition, conservatism and relevance (van der Meulen et al, 2007;Barth et al, 2008;Jeanjean & Stolowy, 2008).…”

Section: Conclusion Limitations and Recommendationsmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of IFRS Adoption on Earnings Quality: A Study Conducted on Foreign Issuers in the United States

Besten¹,

Γεωργακόπουλος²,

Vasileiou³

et al. 2015

IBR

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The worldwide adoption of International Financial Reporting Standards (IFRS) is affecting many countries around the globe as it has become widely spread. Since 2007 the United States (US) allows foreign issuers to voluntarily adopt IFRS. This paper investigates the effect of IFRS adoption on earnings quality after voluntary IFRS adoption was allowed to foreign issuers in the US. More precisely, the discretionary accruals and the small positive earnings are tested for a sample of foreign issuers in the US that are registered and reporting with the SEC, comparing a pre-period from 2002 to 2006 with a post-period from 2008 to 2011. The results from the difference-in-differences regression analysis suggest that in terms of discretionary accruals there is no statistical difference between the pre-IFRS and the post-IFRS period, therefore the earnings quality remains the same. For small positive earnings it is found that, when foreign issuers incorporate IFRS, these are lower, indicating higher earnings quality.

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Section: Ifrs and Earnings Qualitymentioning

confidence: 99%

Section: Consequences Of Ifrs Adoption: Foreign Issuersmentioning

confidence: 99%

Section: Conclusion Limitations and Recommendationsmentioning

confidence: 99%

See 1 more Smart Citation

The Impact of IFRS Adoption on Earnings Quality: A Study Conducted on Foreign Issuers in the United States

Besten¹,

Γεωργακόπουλος²,

Vasileiou³

et al. 2015

IBR

View full text Add to dashboard Cite

show abstract

“…Macías and Muiño (2011) state that adoption of IFRS in these countries are mostly for satisfying regulatory needs and not for satisfying investors' and creditors' needs. Van der Meulen et al (2007) investigated the attribute differences (value relevance and timeliness) between US GAAP and IFRS earnings. They found that US GAAP and IFRS only differ with regard to the predictive ability as US GAAP outperforms IFRS in given controlling differences.…”

Section: Previous Studies Related To Impact Of Ifrs On Value Relevancmentioning

confidence: 99%

The Impact of IFRS on the Value Relevance of Accounting Information: Evidence from Turkish Firms

Karğın¹

2013

IJEF

153

104

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Value relevance is being defined as the ability of information disclosed by financial statements to capture and summarize firm value. Value relevance can be measured through the statistical relations between information presented by financial statements and stock market values or returns. In many studies, Ohlson model (1995) has been adopted to explore relationships among the market value of equity and two main financial reporting variables, namely the book value of equity per share (represents balance sheet) and earnings per share (represents income statement). This study investigates the value relevance of accounting information in pre-and post-financial periods of International Financial Reporting Standards' (IFRS) application for Turkish listed firms from 1998 to 2011. Market value is related to book value and earnings per share by using the Ohlson model (1995). Overall book value is value relevant in determining market value or stock prices. The results show that value relevance of accounting information has improved in the post-IFRS period (2005)(2006)(2007)(2008)(2009)(2010)(2011) considering book values while improvements have not been observed in value relevance of earnings.

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“…(Flower, 1997;Zeff, 1998;Ball, 2001;Hope, 2003;Hope et al, 2006;Meulen et al, 2007;Ding et al, 2007;Soderstrom & Sun, 2007;Barth et al, 2008;Clacher, Ricqebourg, & Hodgson, 2013).…”

Section: Resultsunclassified

The Impact of the IAS/IFRS Adoption on the Predictive Quality of Discretionary Accruals: A Comparison between the French and the British Context

Olfa¹,

Hamadi²

2015

IJEF

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The purpose of this article is to study and compare the impact of the adoption of the international standards IAS/IFRS and the legal regime of a country on the pertinence of the discretionary accruals in terms of its quality of the prediction of future operating cash flows in two contexts: The French and United-Kingdom. The findings of our study prove that the adoption of these norms has clearly improved the predictive quality of discretionary accruals in the British context. In France, such effect has been demonstrated as significant and positive for both periods. The study of the impact of the IFRS norms on the predictive quality of discretionary accruals on the two European countries of our study shows that in the British context, the association between the discretionary accruals and the future operating cash flows is more important for the companies using the international norms than in those applying the British ones. In the French context, no significant association between the discretionary accruals and the IFRS has been verified. Next, our study has spread to see the impact of the legal regime on the predictive power of discretionary accruals before and after the adoption of the IAS/IFRS norms. The findings prove that the fullness of the association between the future operating cash flows and the discretionary accruals is stronger for the enterprises which are under the British context than those under the French one.

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Attribute differences between U.S. GAAP and IFRS earnings: An exploratory study

Cited by 95 publications

References 46 publications

The Impact of IFRS Adoption on Earnings Quality: A Study Conducted on Foreign Issuers in the United States

The Impact of IFRS Adoption on Earnings Quality: A Study Conducted on Foreign Issuers in the United States

The Impact of IFRS on the Value Relevance of Accounting Information: Evidence from Turkish Firms

The Impact of the IAS/IFRS Adoption on the Predictive Quality of Discretionary Accruals: A Comparison between the French and the British Context

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