IFRS adoption: a systematic review of the underlying theories

Agana, Joseph Akadeagre; Zamore, Stephen; Domeher, Daniel

doi:10.1108/jfra-08-2022-0317

Cited by 4 publications

(7 citation statements)

References 95 publications

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“…The idea in this context was to provide information regarding the impact of IFRS 13 and if it has had the desired effects. As stated in previous studies [43][44][45], IFRS 13 aimed at increasing the transparency of what methods and assumptions that were used. Through this study we have been able to confirm that IFRS 13 has in fact increased the transparency in real estate companies as most of them disclose more detailed information about both methods and assumptions, than what was disclosed prior under IAS 40.…”

Section: Discussionmentioning

confidence: 99%

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

Škoda,

Bočková,

Guzoňová

2023

HighTech. Innov. J.

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IFRS 13 had its mandatory implementation on January 1st, 2013. The new accounting standard, which represents one step closer to harmonization between U.S. GAAP and IFRS, aims to eliminate inconsistencies in fair value measurement and its related disclosures through the introduction of new reporting requirements, specifically for assets and liabilities with no active markets. Although these demands also encompass information concerning financial instruments, our focus was on the disclosure changes related to the fair value of investment properties, previously regulated solely by IAS 40. As investment properties comprise the majority of assets in the real estate industry, this sector was further examined. Through a statistical analysis of the sample companies’ annual reports for the periods immediately before and after the implementation of IFRS 13, the purpose of our descriptor-explanatory study was to investigate the level of compliance with IFRS 13 fair value disclosure requirements for investment properties in real estate companies in Europe. In order to answer this question, we first scrutinized the level of compliance with the new disclosure requirements brought up by the standard and then, intermediated by an adaptation of the model developed by Beretta & Bozzolan (2008), measured the disclosure quality for both periods considered. After data collection and analysis, our findings reveal that IFRS 13 does affect the disclosure quality of investment properties in real estate companies in Europe. Overall compliance is very high, while disclosure quality has increased since the implementation of IFRS 13. As a way to further broaden the research related to the more extensive disclosure requirements under IFRS 13, we suggest additional studies be undertaken where the point of view of the real estate companies could be explored. Moreover, it would be interesting to investigate whether the increased number of disclosures, both in relation to quantity and quality, is relevant from an analyst’s standpoint. Doi: 10.28991/HIJ-2023-04-03-04 Full Text: PDF

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Section: Discussionmentioning

confidence: 99%

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

Škoda,

Bočková,

Guzoňová

2023

HighTech. Innov. J.

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“…Accounting change processes have been increasingly examined under the lens of institutional theory (e.g., [1,39,40,45,50,51]). A major assumption of this stream of literature is that organizations react to institutional pressures by adopting practices that are socially acknowledged as being the most legitimate and suitable, irrespective of their fundamental efficiency [52,53].…”

Section: Theoretical Background and Previous Ifrs-based Researchmentioning

confidence: 99%

“…or manipulate the criteria or conditions of conformity" [30] (p. 161). In this regard, several authors (e.g., [1,3,5,6,64]) have reported that the adoption of IFRS by many nations and organizations has been driven by the expected economic and legitimacy benefits. Key logic sponsoring the adoption of IFRS entailed efficiency/economic discourses [23,54,65].…”

Section: Theoretical Background and Previous Ifrs-based Researchmentioning

confidence: 99%

“…Extant International Financial Reporting Standards (IFRS) research reports that the expected economic and legitimacy benefits have driven the adoption of IFRS by many countries (e.g., [1][2][3][4][5][6]). However, while the IFRS Foundation claims that the primary mission of IFRS is to "bring transparency, accountability and efficiency to financial markets around the world .…”

Section: Introductionmentioning

confidence: 99%

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Transitioning to an IFRS-Based Accounting System: Longitudinal Insights from Practitioners in Portugal

Silva,

Fontes,

Menezes

et al. 2023

Sustainability

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This paper explores the extent to which International Financial Reporting Standards (IFRS)-wide support (regardless of the institutional context) is warranted. Drawing from an institutional theory framework, it investigates the extent to which practitioners in a code-law-rooted country perceive the materialization of claimed benefits of IFRS and the institutional forces that may hinder the IFRS’s institutionalization process. An interpretative approach based on qualitative research was adopted. Longitudinal evidence was gathered from 34 in-depth semi-structured in-person interviews with Portuguese preparers conducted in 2009 (just before an IFRS-based accounting system was adopted) and 2017 (at a post-implementation mature stage). Qualitative data analysis was carried out using a thematic coding scheme derived from the adopted theoretical framework: legitimacy and economic (operational and financial) benefits and institutional contradictions (IFRS’s in-country adequacy). The main results highlight that, while legitimacy benefits have been broadly recognized, economic benefits were scantly perceived due to the enduring code-law institutional logic embedded in the Portuguese context. Consistently, a high possibility of decoupling and manipulating accounts was acknowledged, which in turn casts reservations not only about the material consequences of the international convergence process to IFRS but also about its contribution towards sustainable development. Given that a major academic debate persists on whether accounting harmonization is beneficial, this research’s findings fill this gap and provide valuable insights for future research, practice, and regulation. Particularly, our findings enhance the urgency of developing institutional adjustments, such as changing national culture, on behalf of the Anglo-Saxon-based institutional approach of IFRS.

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“…The overall findings support increase in information quality, a decrease in asymmetry of information, more rigorous enforcement and convergence. In same vein Agana, Zamore and Domeher (2023) buttressed that the adoption of the international accounting standards increases the quality of information disclosed, thus reducing the information asymmetry and, consequently, the costs for analysis and decision-making by investors, reflecting directly in the reduction of capital cost of companies. Glaum et al as knit by Agana, et al (2023) do not disagree with findings on assesses the impact of the IFRS adoption in Germany on the accuracy of analysts' forecasts from 1997 to 2005.…”

Section: Introductionmentioning

confidence: 99%

IFRS Adoptions on Entrepreneurial Intentions: The Nigeria Experience from 2006-2017

Ovharhe

Abada²

2023

Am. J. Soc. Dev. Entrep.

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This study investigated pre and post-IFRS adoption and entrepreneurial intentions from 2006-2017 using Panel Data from annual financial statement of quoted companies. Data for the study were obtained from secondary sources and analysed using Eview9 statistical package namely: ADF Unit Root Test, Panel Cointegration test; Bayesian Error Correction Model, Panel OLS among others. Data for the work were drawn with purposive sampling techniques from samples of 72 observations Nigeria stock exchange statistical Bulletins. The R-square (Coefficient of Determination) shows an explanation of Pre IFRS (0.280213) and Post IFRS (0.440826) percent of the employed model, i.e. Pre IFRS=28%; Post IFRS 44% and of the variance of the criterion variable is explained by the predictor variable. Which shows how well-fitted the regression is based on the unique theoretical combinations of variables. The Durbin-Watson being a test for auto/serial correlation shows an output of Post IFRS is 1.434594, while Pre IFRS is 1.428219 which signifies the absence of a serial or autocorrelation of the residual (error term) and appears to be within the relevant range. The F-statistics testing the overall hypothesis of the slope coefficient displays a very significant long run relationship based on the statistic output of Post IFRS (6.109727); Pre IFRS (0.004044) at a probability level of Post IFRS (0.000957); Pre IFRS (6.423459) which is less than the critical value of 0.05 (0.00 < 0.05). Therefore, overall we reject null hypothesis and alternate that there is significant (short-run and long-run) relationship between employed variables but in favour with Post IFRS adoption on entrepreneurial intentions. We therefore recommend among others that entrepreneurial intention should focus to boost the long term benefits of all total asset, current asset, non-current asset and profitability index in line with IFRS value relevance reporting accounting techniques.

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IFRS adoption: a systematic review of the underlying theories

Cited by 4 publications

References 95 publications

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

Transitioning to an IFRS-Based Accounting System: Longitudinal Insights from Practitioners in Portugal

IFRS Adoptions on Entrepreneurial Intentions: The Nigeria Experience from 2006-2017

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