The readability impact of international financial reporting standards

2015 ◽  
Vol 27 (3) ◽  
pp. 282-303 ◽  
Author(s):  
Glenn Richards ◽  
Chris van Staden
Keyword(s):  
Computational Linguistics ◽  
Financial Reporting ◽  
Annual Report ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Financial Disclosures ◽  
Negative Impacts

Purpose – This paper aims to compare the readability of narrative annual report disclosure pre- and post-International Financial Reporting Standards (IFRS) adoption using a computational linguistics programme to determine if annual report disclosures have become more difficult or easier to read following the adoption of IFRS. Design/methodology/approach – This paper empirically measures narrative annual report disclosure readability pre- and post-IFRS adoption using a computational linguistics programme. In this analysis, the authors control for variables that have been identified as relevant to the understanding of financial disclosures, such as size, business volatility, financial leverage and industry. Findings – Significant relationships have been identified between IFRS adoption and reduced readability indicators using readability formulas, and also using other factors such as increased length of annual report disclosures and increased use of tables. Findings suggest that the adoption of IFRS has added complexity and resulted in reduced readability of annual report disclosures. Practical implications – Academic backing to claims of IFRS’s negative implications for financial statements and their ultimate users should encourage action on the part of standard setters and report preparers to address the negative impacts of IFRS adoption. Originality/value – This paper is the first to provide evidence that New Zealand equivalents to IFRS adoption have resulted in not only longer disclosures but also more complicated disclosures.

What influences the willingness of Vietnamese accountants to adopt International Financial Reporting Standards (IFRS) by 2025?

2018 ◽  
Vol 26 (2) ◽  
pp. 225-247 ◽  
Author(s):  
Duc Phan ◽  
Mahesh Joshi ◽  
Bruno Mascitelli
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Theory And Practice ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Policy Makers ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Willingness To Adopt

PurposeThe purpose of this paper is to examine the effects of perceived implications of International Financial Reporting Standards (IFRS) adoption on the willingness to adopt IFRS.Design/methodology/approachThe study analysed the causal relationships between perceptions and the willingness of the accountants to adopt IFRS.FindingsThe findings revealed that perceived benefits drove the willingness to adopt IFRS whereas the perceived disadvantages and challenges diminished the willingness. Knowledge of IFRS enhanced the willingness towards IFRS adoption. Also, legitimacy desire enhanced the association between the perceived implications and the willingness to adopt IFRS.Originality/valueThe study contributes significantly to theory and practice as Vietnamese policy makers recently announced their strategic planning to full IFRS adoption by 2025.

scholarly journals The influence of culture on disclosures in financial statements prepared under International Financial Reporting Standards

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 111-132 ◽  
Author(s):  
Jerzy Gierusz ◽  
Katarzyna Koleśnik
Keyword(s):  
Financial Reporting ◽  
Comparative Studies ◽  
Financial Statements ◽  
Arab Countries ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Financial Disclosures ◽  
The Impact

The primary objective of this article is to investigate the impact of culture (as measured by Hofstede) on disclosures in financial statements prepared under International Financial Reporting Standards (IFRS) by firms from different countries. The sample comprises 2011−2013 consolidated financial statements of stock companies (excluding banks, insurance, and other financial institutions) from four countries repre- senting different cultural areas: the United Kingdom (Anglo), Germany (Germanic), Poland (Central Eastern Europe; CEE) and Kuwait (Arab). The research material came from 312 annual consolidated financial statements from 104 companies. The results reveal that cultural values have a significant impact on financial disclosures even after the use of IFRS. The paper is one of the few comparative studies attempting to assess the effects of culture on financial disclosures in Western Europe countries, CEE countries and Arab countries. Most of the international comparative studies in this research area have neglected CEE and Arab countries.

Research productivity of International Financial Reporting Standards (IFRS) from 2003 to 2020

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bashir Tijjani ◽  
Shafiq Ur Rehman ◽  
Zachariah Peter ◽  
Ishtiaq Ahmad Bajwa ◽  
Muhammad Ajmal Khan
Keyword(s):  
Bibliometric Analysis ◽  
Financial Reporting ◽  
Research Productivity ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Publication Patterns ◽  
Scopus Database

Purpose This study aims to examine the quantitative research productivity of International Financial Reporting Standards (IFRS) globally by using the bibliometric approach. The method was applied to articles indexed in the Scopus database to analyze the publication patterns, trends and research productivity of the selected papers. Design/methodology/approach Bibliometric analysis is applied to analyze research productivity of IFRS from 2003 to 2020. The method was applied to articles indexed in the Scopus database to analyze the publication patterns and research productivity of the selected papers. Findings This study finds that a good number of articles have been published on IFRS, the top five countries are the USA, UK, Australia, Germany and Canada. This clearly shows that developed markets have the highest number of publications on IFRS. This could be as a result of the early adoption of IFRS by those economies and owing to the interest of researchers in those markets. Most of the studies are quantitative in nature; this study indicates that publication on accounting standards is popular as the number of citations is significant; most of the articles have two or more authors and were published in top-ranking journals. Practical implications This study provides up-to-date literature on the global research productivity of IFRS; as a result, it supports the development of policies by the users of this accounting standards. The findings of this study also serve as a reference point for firms and regulators around the world. Given the thoroughness of the methodology of this study, the results make it easier to effectively identify the direction of research on the implementation of IFRS in organizations. Originality/value This study provides a more comprehensive bibliometric analysis on the growth of IFRS literature (2003–2020) in the Scopus database; most of the prior studies have covered relatively few areas of focus as well as a fewer number of high impact factor journals. The relevance of this finding is in uncovering different areas of IFRS research productivity globally.

Determinants of adoption of International Financial Reporting Standards in Ugandan micro finance institutions

2019 ◽  
Vol 10 (3) ◽  
pp. 336-355 ◽  
Author(s):  
Juma Bananuka ◽  
Zainabu Tumwebaze ◽  
Doreen Musimenta ◽  
Patience Nuwagaba
Keyword(s):  
Financial Reporting ◽  
African Country ◽  
Explanatory Power ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Correlational Data

Purpose The purpose of this paper is to report on the results of a study carried out to establish the contribution of board of directors’ effectiveness, intellectual capital (IC) and managerial attitude to the adoption of International Financial Reporting Standards (IFRSs) in microfinance institutions (MFIs). Design/methodology/approach This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 67 MFIs that are members of the Association of Microfinance Institutions of Uganda. The data were analyzed using statistical package for social sciences. Findings Both board of director’s effectiveness and IC positively and significantly contribute to the adoption of IFRSs. Managerial attitude is positively and significantly associated with the adoption of IFRSs, but its explanatory power is subsumed in IC. Originality/value To the authors’ knowledge, this is the first study to investigate the contribution of board of director’s effectiveness, IC and managerial attitude to the adoption of IFRSs in MFIs using evidence from a developing African country like Uganda.

Compliance with international financial reporting standards: the case of listed firms in Ghana

2016 ◽  
Vol 14 (1) ◽  
pp. 131-156 ◽  
Author(s):  
Kingsley Opoku Appiah ◽  
Dadson Awunyo-Vitor ◽  
Kwame Mireku ◽  
Christian Ahiagbah
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Developing Economies ◽  
Random Effect ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Firm Age ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards

Purpose This study aims to examine the association between five firm-specific characteristics and the level of compliance with International Financial Reporting Standards (IFRS) by companies listed on Ghana Stock Exchange. The five firm-specific characteristics are firm size, profitability, leverage, auditor type and firm age. Design/methodology/approach The study uses dataset from 31 listed Ghanaian firms from 2008 to 2012. Random effect is used to examine the influence of the predictive variables on the level of IFRS corporate compliance. Findings The result reveals a positive significant relationship between the level of compliance and firm size, auditor type, cross-listing and sector (information and communications technology (ICT) and agro-forestry). On the contrary, the level of compliance exhibits a negative significant association with leverage and firm age. It is observed that the level of compliance is not related to profitability. The results are robust to different model specifications. Practical implications This study identifies firm-specific characteristics that influence IFRS compliance by listed firms in Ghana. This would aid accounting policy makers to institute strategies to encourage compliance with IFRS by the listed firms. Originality/value The study contributes to financial reporting literature relating to developing economies and Ghana, in particular.

scholarly journals PERFORMANCE APPRAISAL AS A PREDICTOR OF EARNINGS MANAGEMENT IN A CONSUMER GOODS COMPANY: EVIDENCE FROM A COMPARATIVE ASSESSMENT OF PRE-AND POST INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION IN NIGERIA

2020 ◽  
pp. 28-33
Author(s):  
Paul Femi Fashagba ◽  
Abiola Abosede Solanke
Keyword(s):  
Earnings Management ◽  
Performance Appraisal ◽  
Financial Reporting ◽  
Consumer Good ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Ratio Data ◽  
Negative Effect

Previous studies have examined the effects of International Financial Reporting Standards (IFRS) adoption on earnings management. However, these studies focused attention on the general implications of IFRS adoption on earnings management with no specific focus on the links between performance appraisal and earnings management in the pre and post IFRS era. The objective of the study is to examine the relationship between performance appraisal and earnings management in Pre and Post IFRS period. The dependent variable in the study is earnings management proxy by earnings per share. The independent variable is performance appraisal measured by profitability ratio, liquidity ratio, and debt ratio. Data were extracted from the records of a consumer good company in Nigeria. The multiple regression analysis was applied. Results revealed that in the pre IFRS period in Nigeria, performance appraisal had significant positive effect on earnings management, while it had significant negative effect in the post IFRS period. It is important that company’s management adhere strictly to the provisions of the IFRS guidelines. KEYWORDS: IFRS, earnings management, profitability, liquidity, debt

scholarly journals The role of Politics and Economics in the International Financial Reporting Standards (IFRS) Adoption

2019 ◽  
Vol 36 (2) ◽  
pp. 407
Author(s):  
Araceli Mora
Keyword(s):  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Los Grupos

La adopción de las NIIF desde 2005 ha conllevado beneficios, pero la investigación también ha demostrado que su efecto no ha sido uniforme en los distintos países debido a las diferencias institucionales y en los incentivos. La teoría contractual ofrece un marco teórico para la investigación de las consecuencias económicas y de los incentivos de los grupos de interés para ejercer presión, pero la investigación sobre la actividad de los políticos para interferir en la contabilidad es escasa. El objetivo de este estudio es mostrar el papel de los gobiernos en la contabilidad. Para ello se muestran los cambios acontecidos en el proceso de adopción de las NIIF en la UE para incrementar la interferencia política en nombre del “interés público”, destacando el caso del sector financiero. Se concluye que todas las partes involucradas deberían comprometerse a buscar el equilibrio entre normas basadas en principios y mecanismos de control para mejorar el proceso de comparabilidad con las NIIF.

scholarly journals INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION, INVESTOR PROTECTION, AND FOREIGN PORTFOLIO INVESTMENT: A REVIEW

2021 ◽  
pp. 17-38
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Investor Protection ◽  
International Financial Reporting Standards ◽  
Regulatory Environment ◽  
Portfolio Investment ◽  
Reporting Standards ◽  
Foreign Portfolio Investment ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

This paper aims to analyze the impacts of International Financial Reporting Standards (IFRS) adoption on foreign portfolio investment (FPI) in relation to investor protection based on existing empirical literature. This study uses a historical approach and focuses on thirty-six relevant articles published in accounting and finance journals. The author provides a theoretical groundwork of the association between IFRS adoption and FPI and summarizes the results. The findings are critically analyzed by employing developed vs. developing country lens. The review study reveals that the effects of IFRS adoption on FPI significantly differ between developed and developing countries. Although the positive impact of IFRS adoption on FPI is documented in existing literature, not all countries (particularly developing countries), firms, and users have benefited or equally benefited from IFRS adoption regarding FPI. In addition, the positive impacts of IFRS adoption on FPI are associated with the country's regulatory environment, such as level of investor protection. The findings of the study suggest that developing countries should ensure a proper regulatory environment to reap the full benefits of IFRS adoption. This review contributes to the existing literature by providing a comparative analysis of IFRS adoption effect on FPI between developed and developing countries while also suggests future research avenues.

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