Mandatory adoption of IFRS in Latin America: A boon or a bias

Abstract

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Enforcement and accounting quality in the context of IFRS: is there a gap in the literature?

“…In summary, the analysis evidenced that enforcement in the context of IFRS and its impact on accounting quality is a topic that is still in the early stages of research, and must be looked into further. This corroborates the opinion of researchers who argue that few studies actually assess the enforcement practices of countries (Böcking et al, 2015;Guerreiro et al, 2020;Kleinman et al, 2019;Mantzari and Georgiou, 2019;de Moura and Gupta, 2019;Preiato et al, 2015;Silva and Rodrigues, 2017).…”

“…The second most discussed topic is "enforcement." However, out of the 46 papers selected for the period under analysis, only 11% (5) focus on the study of IFRS enforcement, which corroborates the opinion of several authors who claim that studies on enforcement mechanisms of the various countries are scarce (Böcking et al, 2015;Guerreiro et al, 2020;Mantzari and Georgiou, 2019;de Moura and Gupta, 2019;Preiato et al, 2015).…”

“…and in the understanding of how enforcement interacts with the assessment of the impact of IFRS on accounting quality (Gao and Sidhu, 2018). Several authors have additionally highlighted the scarcity of studies on enforcement mechanisms in the various countries (Böcking et al, 2015;Guerreiro et al, 2020;Mantzari and Georgiou, 2019;de Moura and Gupta, 2019;Preiato et al, 2015), perhaps because of the acknowledged difficulty in analyzing real practices, as these depend on the internal characteristics of the country (Gu et al, 2019).…”

IFRS adoption and firms’ opacity around the world: what factors affect this relationship?

“…There are several future lines of research, for instance, recently, De Moura and Gupta (2019) found a positive effect between IFRS adoption in analysts’ information environment, but it remains to analyze whether there is also an improvement in the analysts’ consensus forecast. Furthermore, De Moura et al (2020) also found that IFRS adoption reduced the firm’s cost of equity and its cost of debt, but we may wonder whether the country risk will be also affected by this IFRS adoption.…”

What influences the implementation of IFRS for SMEs? The Brazilian case

“…Even though it is mandatory, low enforcement (Brown et al ., 2014; De Moura and Gupta, 2019) and the absence of sanctions to implement the standard may imply firms are not complying with the standard. Anecdotal evidence suggests that firms have been slow to implement the standard (Meirelles, 2012).…”