Differences between domestic accounting standards and IAS: Measurement, determinants and implications

Ding, Yuan; Hope, Ole‐Kristian; Jeanjean, Thomas; Stolowy, Hervé

doi:10.1016/j.jaccpubpol.2006.11.001

Cited by 424 publications

(311 citation statements)

References 44 publications

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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 standards at the level of the manipulation of the accounting results using the discretionary accruals has made the object of an important number of empirical verification and the results of these studies are various. Ding et al (2007) considered that the differences translated in terms of "absence" and of "divergence" between the domestic standards of a country and the international norms may have important implications on the disclosure quality. They demonstrated that a high score in terms "of absence" may create an important margin for the earnings manipulation and consequently, the firms which are in countries characterized by a non-sophisticated-accounting legislation have the tendency to achieve an advantage of accounting discretion linked to the manipulation of earnings.…”

Section: Sc Is the Bias That Can Touch The Interpretation Of These mentioning

confidence: 99%

“…The compulsory adoption of these norms by the European Union countries and the formal commitment by the FASB and The I.A.S.B to converge the US GAAP to the international standards have clearly contributed to their wide acceptance by many countries all over the world (Ding et al, 2007). However, many researchers claim that the effects of this adoption may differ from one country to another (Flower, 1997;Zeff, 1998).…”

Section: Introductionmentioning

confidence: 99%

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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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“…(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

Section: Sc Is the Bias That Can Touch The Interpretation Of These mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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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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“…A large number of studies argue that financial statements under IFRS provide earnings information with high predictability for future earnings, and thus, the accounting numbers on such financial statements are relatively value-relevant for firm valuation (Barth et al, 2008;Ding et al, 2007;Bellas et al, 2007;Morais & Curto, 2007). However, regarding IFRS adoption, researchers and practitioners consider low reliability in accounting information to be problematic, because the principle-based regulation in IFRS leaves accounting practice choices to the manager's discretion.…”

Section: Introductionmentioning

confidence: 99%

IFRS adoption and investor perceptions of earnings quality: evidence from Korea

Heejeong¹,

Kim²,

Kim

2018

Investment Management and Financial Innovations

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This study examines the consequences of International Financial Reporting Standards (IFRS) adoption in terms of the investor perception of earnings quality in the Korean stock market. Building on evidence from Ecker et al. (2006) suggesting that return-based earnings quality (E-loading), as captured by the sensitivity of stock returns to accounting information risk, accurately represents investor perceptions of earnings information risk, the authors examine whether E-loading is different between the pre- and post-IFRS adoption periods. Using KSE-listed firms from 2006 to 2014, the authors find the evidence that the extent of stock return sensitivity to information risk embedded in financial statements is greater in the period of post-IFRS adoption than in the period of pre-IFRS adoption. This finding indicates that even though accounting-based earnings quality improves after the adoption of IFRS, investors perceive earnings information after the adoption of IFRS as riskier than before. In addition, the difference in investor perception is more pronounced for firms with low accruals quality as captured by discretionary accruals, indicating that the effect of IFRS adoption on return-based earnings quality is distinctive from that on accounting-based earnings quality. The paper contributes to the literature on IFRS by exploring the effect of IFRS adoption through a new perspective on earnings quality in capital market.

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“…Taken together, these studies have shown that the adoption of IFRS significantly affects the performance measures for listed firms, particularly financial ones. Moreover, they identified a considerable number of problems in implementing the IFRS in Europe owing to their differences with respect to Anglo-Saxon countries, especially in terms of business characteristics and the legal, cultural, and institutional aspects of accounting regulations (Joos and Lang, 1994;Ding et al, 2007). The lack of uniformity of these same factors within the European Union also impedes the process of convergence between Member States.…”

Section: Introductionmentioning

confidence: 99%

ROE and Value Creation under IAS/IFRS: Evidence of Discordance from French Firms

Levy¹,

Khong²,

Arouri³

2010

EFAJ

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Differences between domestic accounting standards and IAS: Measurement, determinants and implications

Cited by 424 publications

References 44 publications

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

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

IFRS adoption and investor perceptions of earnings quality: evidence from Korea

ROE and Value Creation under IAS/IFRS: Evidence of Discordance from French Firms

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