The qualitative characteristics of financial information, and managers’ accounting decisions: evidence from IFRS policy changes

Nobes, Christopher; Stadler, Christian

doi:10.1080/00014788.2015.1044495

Cited by 59 publications

(58 citation statements)

References 60 publications

(34 reference statements)

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“…The lack of value relevance of financial statements from uniform accounting practice shows the need to change from uniform to more qualitative accounting system. Consequently, accounting value should be determined based on situational analysis of financial transactions (Nobes & Stadler, 2015). Such analysis which is part of IFRS orientation poses a challenge to companies with limited familiarity with qualitative analysis and inadequate analytic tools to determine accounting values in some business environments such as Nigeria.…”

Section: International Journal Of Accounting and Financial Reportingmentioning

confidence: 99%

The Effects of Organisational Culture on IFRS Adoption: Evidence from Nigerian’ Companies

Edeigba

Gan²,

Amenkhienan³

2018

ijafr

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This study investigates the underlying factors contributing to the International Financial Reporting Standards (IFRS) adoption in Nigeria. The diversity of responses to IFRS adoption is a phenomenon that requires empirical investigation to understand the reasons why some companies adopt IFRS other do not. Previous studies have investigated preparers of financial statements’ compliance with IFRS. However, there is a dearth of research on the influence of cultural factors on IFRS adoption. Little has heretofore has been done to examine cultural variables as determinants of IFRS adoption. This study applies a self-administered survey instrument to elicit data from four major cities in Nigeria. The analysis involves applied logistic regression to estimate the relationship between the covariates and the companies’ decisions to adopt IFRS. The results indicate companies’ professionalism, transparency, flexibility, secrecy, uniformity and statutory control are significant factors impacting IFRS adoption at different magnitudes. For example, a company that considers IFRS will increase the level of financial statements transparency is more likely to maintain some levels of secrecy. The study identifies that IFRS adoption can only be successful when accountants develop the relevant technical expertise in IFRS requirements prior to the implementation. Consequently, there is a need for more practical training in IFRS accounting valuation, recognition, measurement and disclosure of financial information to users of financial statements. The diversity in responses to IFRS adoption, where some companies adopt and others show resistance to IFRS requirements has been a phenomenon that requires empirical investigation to understand the rationale. Though some studies have investigated companies’ compliance with accounting regulations in Nigeria, there is limited research on factors influencing IFRS adoption. A consequence is that efforts to come up with effective policies to enhance IFRS adoption and obtain compliance status for Nigerian companies are constrained. The objective is to contribute to initiatives aimed at assuring foreign investors of reliability of IFRS financial statements prepared by Nigerian companies.

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Section: International Journal Of Accounting and Financial Reportingmentioning

confidence: 99%

The Effects of Organisational Culture on IFRS Adoption: Evidence from Nigerian’ Companies

Edeigba

Gan²,

Amenkhienan³

2018

ijafr

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“…al., 2001;Kothari et. al., 2010;Nobes & Stadler, 2015). For instance, the relativeness of IFRSs is visible in case of tangible assets obtained from own production, as the managers can either classify those assets according to IFRS 5, as an assets held for sale, or can just affect them into the operational activity of the entity, case when the assets will have to be classified as tangible assets, according to IAS 16.…”

Section: State Of Art Concerning Ias 8 Revision Projectsmentioning

confidence: 99%

Critical Analysis on the Amendments Discussed, Concerning Changes in Accounting Estimates

Burcă

Nicolaescu

Dragut

2019

Studies in Business and Economics

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In this article, our main aim is to bring in discussion some of the most controversial points debated along the time on the use of the accounting estimates in financial reporting. More important, we have referred to the Exposure Draft recently closed for comment letters, which addressed some points that will follow to be transformed into several amendments to IAS 8. Our discussion is focused, especially on how professionals can make a clear distinction between changes in accounting estimates and changes in accounting policies. We try to underline the trinomial perspective of this subject, as the changes in accounting estimates impact, not only the financial statements, but can generate issues on auditing those estimates, or on using financial information output on the entity valuation models. Additionally, we try to emphasize the essential role of this distinction between changes in accounting estimates and changes in accounting policies.

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“…In particular, they show the interesting, from this paper's point of view, and a symptomatic tendency -disappearance of the use of the words 'truth' and 'true'. Was this an intended change in the overall shape of the framework whose general purpose [Nobes, Stadler 2014] is to assist the board (standard setter) when setting accounting standards? The paper highlights the importance of the so-called qualitative characteristics of financial statements.…”

Section: Tfv's Evolutionmentioning

confidence: 99%

The evolution of the importance of the true and fair view (TFV) principle. The case of Poland

Piechocka-Kałużna¹

2018

Financial Sciences

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The aim of this paper is to analyse matters of truth, which is inherent issue of accounting (and therefore in reporting, as its part), which is reflected in the true and fair principle (TFV). The paper demonstrates the essence of the TFV principle and the evolution of its role and place among the set of qualitative characteristics of financial statements. After examining the changes in the development of the perception of TFV the paper makes an appraisal, gives the author's comments and contribution by providing direct implications for regulators and the setters of standards. With respect to typical limitations regarding behavioural studies, the paper provides practical as well as social implications about understanding of the TFV concept and its effect on both the preparers and users of financial statement.Keywords: true and fair view concept (TFV), truth in accounting, truth in reporting, quality characteristics of financial statements.

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The qualitative characteristics of financial information, and managers’ accounting decisions: evidence from IFRS policy changes

Cited by 59 publications

References 60 publications

The Effects of Organisational Culture on IFRS Adoption: Evidence from Nigerian’ Companies

The Effects of Organisational Culture on IFRS Adoption: Evidence from Nigerian’ Companies

Critical Analysis on the Amendments Discussed, Concerning Changes in Accounting Estimates

The evolution of the importance of the true and fair view (TFV) principle. The case of Poland

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