Short-Term and Long-Term Effects of IFRS Adoption on Disclosure Quality and Earnings Management

IFRS adoption and financial reporting quality in the MENA region

“…However, as explained above, Christensen et al (2015) reached a different conclusion as they provided evidence that accounting quality has improved following the voluntary IFRS adoption in Germany, and they refer to the incentives behind the adoption of these firms. These contradicting results are explained with regards to German GAAP and IFRS differences, as well as voluntary verses mandatory adoption by Salewski's et al (2014) study. They compare earnings management under German GAAP in comparison to IFRS across two periods under IFRS adoption in the MENA region IFRS adoption, with each period covering four years.…”

“…Literature review and research hypotheses Previous researchers have studied financial reporting quality from different perspectives to evaluate accounting quality. There are different indicators that reflect the quality of accounting, such as earnings management or income smoothing (Healy and Wahlen, 1999;Holland and Ramsay, 2003;Ding et al, 2007;Aussenegg et al, 2008;Cai et al, 2008;Jeanjean and Stolowy, 2008;Chen et al, 2010;Garcia and Pope, 2011;Ahmed et al, 2013;Shubita, 2015), financial analysts' forecasts (Byard et al, 2011;Jansson et al, 2012), loss provisions (Leventis et al, 2011), discretionary accruals (Callao and Jarne, 2010;Shubita, 2010;Houqe et al, 2012;Salewski et al, 2014) and timely loss recognition (Gebhardt and Novotny-Farkas, 2011;Ahmed et al, 2013). Studies refer explicitly to financial reporting quality by concentrating on a selective group of financial reporting issues that have impacted on the measurement of net income and assets that are subject to impairment (Singleton-Green, 2015).…”

“…The above studies have varied between the impacts of IFRS on income smoothing practices. Several studies have emphasised the positive consequences of IFRS adoption, stating that IFRS adoption leads to lower earnings management, and therefore results in higher financial reporting quality (Barth et al, 2008;Cai et al, 2008Cai et al, , 2014Daske et al, 2008;Leventis et al, 2011;Houqe et al, 2012;Salewski et al, 2014). Others find that IFRS adoption has increased earnings management, which results in poorer accounting quality (Callao et al, 2007;Ahmed et al, 2013;Christensen et al, 2015;Capkun et al, 2016).…”

“…They found that the mature phase exhibits a significant decrease in earnings management in comparison to the early phase of IFRS adoption. Salewski et al (2014) assert that the change between the two phases is not the voluntary nor mandatory element of adoption, but rather the gradual building of experience of different implemented parties such as auditors, preparers and users, as they develop their learning and construct common guidelines and interpretations of these new standards over time. Despite the fact that the discussion of these studies focused on Germany, the notion behind stating the above is that the purpose of this study in choosing the time period as well as matching parallel samples of two accounting regimes over the same period, looks at the transition from local to IFRS adoption, with the purpose of eliminating the development and learning factors after the adoption.…”

Disclosure E Materialidade: Evidências Nos Ativos Intangíveis Dos Clubes Brasileiros De Futebol

“…A convergência aos padrões internacionais determinou exigências específicas de divulgação, com foco na característica qualitativa da relevância da informação contábil. Alguns estudos têm considerado a relevância da adoção das normas internacionais no disclosure de informações contábeis (OLIVEIRA; LEMES, 2011; MA-CEDO; ARAÚJO; BRAGA, 2012; AGYEI-MENSAH, SANTOS;MAPURUNGA, 2013;SALEWSKI, 2014), já que a evidenciação de informações mais claras e compreensíveis ajuda a reduzir a assimetria de informações e pode representar um indicador de eficiência.…”