The Adoption of Ifrs 10 and Its Impact on the Scope of Consolidation

Gluzová, Tereza

doi:10.25142/aak.2015.039

Cited by 1 publication

(14 citation statements)

References 6 publications

(2 reference statements)

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“…All the entities had effects in the scope of consolidation, but the increase in the amount of total assets, total liabilities, shareholders' equity, and net income was less than 1% and not significant. Limited and not significant effects were also documented by Gluzová, who analysed the scope of consolidation and total assets of 40 entities listed in the Czech Republic and Poland (Gluzová, 2015) and 19 in the Czech Republic (Gluzová, 2017). Results were that only four (in 2015) and two (in 2017) groups presented a change in the number of consolidated subsidiaries, and minor differences in total consolidated assets.…”

Section: Rq2: Did the Entities Self-declare Effects Of Adopting Ifrs 10?mentioning

confidence: 87%

“…However, scarce literature is found. Gluzová (2015Gluzová ( , 2016Gluzová ( , 2017 attributes this scarcity to the recent adoption of the consolidation package (becoming mandatory only in 2014 with financial statements published in 2015). In fact, the number of studies that covered effective (ex post) effects of the adoption of both IFRS 10 and IFRS 11 is limited and do not provide a complete picture.…”

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

“…Previous research documented that the majority of entities adopted these standards only when they became mandatory (e.g. Mazars, 2014;Vašek and Gluzová, 2014;Gluzová, 2015Gluzová, , 2017. Vašek and Gluzová (2014) Gluzová, 2015Gluzová, , 2017.…”

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

“…Concerning IFRS 10, previous studies on adopting the standard can be split into two groups, namely, those defending limited and immaterial effects of the adoption (e.g. IASB, 2011h;EFRAG, 2012aEFRAG, , 2012bMazars, 2014;Priscilla and Ariyanto, 2014;Vašek and Gluzová, 2014;Gluzová, 2015Gluzová, , 2017 and those defending material effects (e.g. Büdy-Rózsa, 2012; ESMA, 2014, 2016).…”

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

“…In fact, the few studies on the effects of IFRS 10 are divided between evidence of effects in a few groups and immaterial (e.g. IASB 2011g; EFRAG 2012a,2012b; Mazars 2014; Priscilla and Ariyanto 2014; Vašek and Gluzová, 2014;Gluzová, 2015Gluzová, , 2017 and of material effects and in a larger number of groups (e.g. Büdy-Rózsa, 2012;ESMA, 2014ESMA, , 2016.…”

Section: Introductionmentioning

confidence: 99%

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Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

Lopes

2019

MEDAR

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Purpose The purpose of this paper is to investigate how the adoption of IFRS 10 and IFRS 11 affected consolidated financial statements. Specifically, the paper explores whether entities adopted mandatorily or voluntarily both IFRS, whether expressly declared effects, whether considered those effects as material and whether those effects had impacts on selected items of financial statements and on selected financial ratios. Design/methodology/approach The research is an exploratory study using public entities from Germany, France and the UK. The majority of the data is manually collected from financial statements. Findings The results suggest that the adoption of the new IFRS 10 affected the composition of a large number of entity groups but that their financial information and economic-financial indicators do not present material changes. There is also evidence of a large and material impact on the changes in the classification and accounting for interests in arrangements under joint control through the new IFRS 11. The evidence thus suggests unequal effects of the adoption of IFRS 10 and IFRS 11 on the proportion of entities declaring materiality of effects, on the quantitative effects on selected items of financial statements, and on financial ratios. A comparison between the pre-adoption and post-adoption periods reveals that the majority of the effects are driven by the adoption of IFRS 11. Originality/value As far as is known this exploratory paper is the first presenting the effectiveness of adopting the most important standards under the “consolidation package” and opens an avenue for future research by academics, for future post-implementation reviews by IASB, and for analysis of peer reviews between accounting practitioners.

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Section: Rq2: Did the Entities Self-declare Effects Of Adopting Ifrs 10?mentioning

confidence: 87%

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%