The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act

Abstract

This study investigates whether the 2009 German Accounting Law Modernization Act has affected the reporting and accounting practices of German private firms. In reforming German accounting standards, numerous accounting options were deleted, several accounting rules were transferred from IFRS to German GAAP with some modifications, and disclosure requirements were extended. In our analysis, we examine the changes in financial reporting and their effects on disclosures. We use four financial reporting property measures: discretionary accruals, the correlation between operating cash flow and accruals, the persistence of earnings, and the predictability of earnings. The results reveal no change across all financial reporting properties. Examining disclosure compliance for capitalized development costs and other provisions reveals substantial variation in compliance.

Dampak Implementasi PSAK 71 Terhadap Cadangan Kerugian Penurunan Nilai (CKPN) Aset Produktif Perbankan Konvensional Indonesia

“…Salah satu upaya dalam meningkatkan keseragaman dan kualitas standar akuntansi adalah dengan melalui adopsi dan konvergensi International Financial Reporting Standard (IFRS) yang telah dibuktikan melalui peningkatan arus Foreign Direct Investment (Gordon et al, 2012;Lungu et al, 2017;Musah et al, 2020;Nejad et al, 2018;Ramdani, 2020) dan arus Foreign Portfolio Investment (Omotoso et al, 2022;Shovon, 2021) Selain manfaat secara makro peran standar akuntansi secara mikro meliputi dampaknya terhadap kualitas informasi yang disajikan oleh perusahaan serta peningkatan kinerja perusahaan (Akgun, 2018). Melalui standar akuntansi yang berkualitas informasi yang disajikan oleh perusahaan akan menjadi lebih faithfull representative dan minim risiko manipulasi yang dibuktikan rendahnya tingkat manajemen laba perusahaan, keakuratan arus kas dan pelaporan laba (Al-Zabari & Al-Fatlawi, 2019;Zicke & Kiy, 2017). lalu kualitas informasi yang handal dan dapat dipercaya akan memberikan tingkat kepercayaan bagi investor untuk menggunakan laporan keuangan sebagai sumber informasi dalam pengambilan keputusan yang dibuktikan dengan meningkatnya relevansi nilai dan comparability (Adeleke et al, 2018;Gao & Sidhu, 2018;Imhanzenobe, 2022).…”

Compliance With International Financial Reporting Standards and Value Relevance of Accounting Information in South Africa

“…In Germany, Zicke and Kiy (2017) assessed the effect of IFRS on the VR of accounting information. Using a sample of four hundred and thirty-six public companies, the study compared pre and post-IFRS regimes from 2005 to 2014.…”

Revenue Recognition Dilemma under International Financial Reporting Standard (IFRS 15): Perspectives from Key Impacted Firms in Nigeria

“…Previous studies on the impact of IFRS adoption on corporate performance had yielded mixed results [16,17]. While some have observed a significant positive impact of IFRS adoption and implementation on quality of accounting numbers in terms of reliability, relevance, accuracy, and comparability of the reported numbers [7,18]), others have indicated either a nil or insignificant effect on reporting quality of accounting numbers [19,20,21] as there are claims of reported increases in earnings smoothing and other associated creative accounting boobytraps. Nevertheless, there is a growing consensus that the adoption and implementation of updated or revised accounting standards such as IFRS 15 are capable of reducing information asymmetry and enhancing reporting quality [22] because of the unique recognition, measurement, presentation, and disclosure requirements of the standard [4].…”