scholarly journals The effect on the BTD of IFRS adoption and the end of the Transitional Tax Regime (RTT) in Brazil

2022 ◽  
Vol 33 (88) ◽  
pp. 96-111
Author(s):  
Claudio Marcio Pereira da Cunha ◽  
Pedro Paulo Furbino Bretas Barros
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Cross Sections ◽  
Information Quality ◽  
Accounting Information ◽  
Negative Relationship ◽  
Taxable Income ◽  
Ifrs Adoption ◽  
Accounting Information Quality ◽  
The Impact

ABSTRACT This paper aimed to evaluate the moderation by variables related to incentives for earnings management (indebtedness, profitability, and size) over the effect of the change in standards (accounting or tax) on the book-tax differences (BTD). The end of the Transitional Tax Regime (RTT) enables us to evaluate the symmetry between the divergence and reconvergence of the accounting and tax standards, helping to identify the moderating effect of characteristics such as size, leverage, and profitability over the use of the discretion allowed by the International Financial Reporting Standards (IFRS). Studying the effects of changes in the standards contributes to understanding how they affect accounting information quality, particularly when we observe symmetrical movements of divergence of the accounting and tax standards, such as IFRS adoption, and of reconvergence, with the end of the RTT. The analysis conducted enables us to separate effects of divergence between the tax and accounting standards from the innovations introduced by the IFRS. An understanding of the effect of the standard over accounting information quality contributes to the quality of the work of financial analysts, tax authorities, and regulators. Event studies are conducted to evaluate the effect of IFRS adoption, as well as the end of the RTT, over the BTD (a proxy for earnings management), in cross sections of companies. We use explanatory variables related to incentives to manage book and taxable income (indebtedness, profitability, and size), which could explain the ambiguity of the results in the literature. The article provides evidence that the indebtedness and size of companies influence the effect of IFRS adoption, as well as of the end of the RTT. We observed a negative relationship of indebtedness and size with the impact of changes in standards over differences between book and taxable income (BTD).

scholarly journals IFRS Adoption Impact On Financial And Accounting Information Quality: An Exploratory Study On Moroccan Petroleum And Gas Sector

2016 ◽  
Vol 6 (1) ◽  
pp. 337
Author(s):  
Anass Cherti ◽  
Houria Zaam
Keyword(s):  
Financial Reporting ◽  
Information Quality ◽  
Academic Research ◽  
Accounting Information ◽  
Stock Exchanges ◽  
Financial Reporting Standards ◽  
Financial Variables ◽  
Ifrs Adoption ◽  
Accounting Information Quality ◽  
The Impact

<p class="ber"><span lang="EN-US">The balance of <em>International Financial Reporting Standards</em> (IFRS), after ten years of their implementation, has reflected a positive perception of its impacts on the function “finance and accounting” of companies and issuers. Those companies and issuers observe, in a large majority that the transition to IFRS has increased the quality and the homogeneity of the information produced and the rapidity of their establishment. Unfortunately in academic research, such studies remains not clear as most publications front IFRS adoption impact in general manner which concern all sectors at the same study.</span></p><p class="ber"><span lang="EN-US">The purpose of this article is to present the results of an empirical study of three petroleum and gas companies listed in the <em>Casablanca Stock Exchanges</em> (CSE), to measure the impact of the IFRS adoption on financial and accounting information quality in Moroccan petroleum and gas sector.</span></p><p class="ber"><span lang="EN-GB">The released results show that this impact is positive for the petroleum and gas sector and the majority of the accounting and financial variables of this sector under IFRS dependents on those variables under the General Standardization Code of Morocco (GSCM). </span></p>

scholarly journals THE IMPACT OF BIG DATA ANALYTICS ON IMPROVING FINANCIAL REPORTING QUALITY

2020 ◽  
Vol 4 (03) ◽  
Author(s):  
Nagat Mohamed Marie Younis
Keyword(s):  
Big Data ◽  
Financial Reporting ◽  
Data Analytics ◽  
Information Quality ◽  
Accounting Information ◽  
Big Data Analytics ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Accounting Information Quality ◽  
The Impact

Purpose – The current study aims to clarify the importance of big data analytics and its role in changing the accounting profession and the roles of accountants, in addition to testing the impact of big data analytics on improving financial reporting quality in the Saudi environment. Design/ methodology/ approach – To achieve the study's goals and validate hypotheses, relevant previous literature and research are referred. Also, a field study is conducted by distributing a questionnaire of (154) individual academics, financial analysts, accountants, and experts in the field of analyzing big data in the Kingdom of Saudi in 2019. Data are analyzed by using the program of Statistical Package for Social Science (SPSS 17.0). Findings – The study concluded that although business organizations face several challenges when analyzing data, big data analytics has a significant role in achieving high competitiveness for institutions, improving the accounting information quality, providing appropriate information that helps in rationalizing decisions within the economic unit, and providing future information affecting stakeholder's decisions. The study also has proved that there is a statistically significant effect of big data analytics on improving the quality of accounting information, as big data analytics clearly affects the characteristics of the accounting information quality, positively affecting the quality of financial reports. Originality/ Value – Originality/ Value – The analytics of big data is one of the most important topics where it positively affects the improvement of accounting information quality, which reflects on financial reporting quality. Hence, academics and institutions should pay attention to this topic and follow their new ideas. The present study is one of the first studies that deal with this topic and examine the relationship between big data analytics and the characteristics of accounting information which positively affecting financial reporting quality.

The Impact of IFRS adoption and AQ upon Earnings Management in Saudi Stock Exchange (Tadawul): تأثير تطبيق المعايير الدولية لإعداد التقارير المالية وجودة المراجعة على إدارة الأرباح للشركات المدرجة في السوق المالية السعودية (تداول)

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Maha Nasser Allehaidan
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Listed Firms ◽  
Discretionary Accrual ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
The Impact

The main purpose of this paper is to examine the impact of International Financial Reporting Standards (IFRS) adoption and Audit Quality (AQ) on Earnings Management (EM) practices in Saudi Arabia listed firms. EM is measured by the discretionary accrual using Healy (1985) and Kothari, Leone, and Wasley (2005) models. The research sample contains 16 Saudi listed firms during the period from 2014 to 2019. Statistical analysis including t-test and linear regression were used to test the research hypotheses. The investigation indicates that there is a negative relationship between IFRS adoption and EM practices, especially if it is combined with AQ, while it found a positive relationship between firms’ size and accrual EM, and no significant impact of AQ on firms’ debt ratio and EM practices. The importance of these results lies in providing clear evidence that the adoption of IFRS in developing countries has helped reduce earnings manipulation practices, which contributes to gaining confidence in Saudi firms and thus attracting many foreign investments.

International Financial Reporting Standards, board governance, and accounting quality

2016 ◽  
Vol 24 (4) ◽  
pp. 474-497 ◽  
Author(s):  
Krismiaji ◽  
Y. Anni Aryani ◽  
Djoko Suhardjanto
Keyword(s):  
Financial Reporting ◽  
Information Quality ◽  
Accounting Information ◽  
Positive Association ◽  
Faithful Representation ◽  
Board Governance ◽  
Accounting Quality ◽  
Content Type ◽  
Ifrs Adoption ◽  
Accounting Information Quality

Purpose The purpose of this paper is to discuss empirical research examining the impact of International Financial Reporting Standard (IFRS) adoption and board governance on the accounting quality, in terms of relevance and faithful representation. Design/methodology/approach The research uses a sample of 454 observations of publicly listed companies on the Indonesian Stock Exchange for the fiscal year that ends on December 31, 2008 through 2011. Relevance is measured by predictive value, whereas faithful representation is measured by absolute discretionary accrual as an inverse measure. Board governance is measured by the board of commissioner score whereas IFRS adoption is measured by the percentage of IFRS adopted. The data used in this study are obtained both from Indonesian Capital Market Directory, Indonesian Stock Exchange database, and from company annual reports. Findings This research found evidence of a positive association of IFRS adoption on the relevance of accounting information quality. With respect to faithful representation, this study proves a positive association after IFRS adoption. This research also found that board governance has a positive impact on accounting information quality after IFRS adoption both in relevance and faithful representation. This result is in line with investor’s expectations that fair value IFRS adoption enhances the relevance of accounting information. Originality/value This study provides further evidence on the effect of IFRS adoption and board of governance on accounting information quality using data from Indonesia. Moreover, this study measures and tests both dimensions of earnings quality which are relevance and faithful representation and portrays a complete story about the quality of earnings. This study uses the qualitative characteristics of accounting information as proxies for accounting quality, so that it enriches the accounting literature about the role of accounting standards in financial reporting quality.

scholarly journals The impact of IFRS-based accounting standards on earnings management: evidence from Malaysia

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Yosra Makni Fourati ◽  
Rania Chakroun Ghorbel
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Emerging Market ◽  
Accounting Standards ◽  
Absolute Value ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Earning Quality ◽  
The Impact ◽  
Different Levels

This study aims to examine the consequences of International Financial Reporting Standards (IFRS) convergence in an emerging market. More specifically, we investigate whether the adoption of the new set of accounting standards in Malaysia is associated with lower earnings management. Using a sample of 3,340 firm-year observations across three reporting periods with different levels of IFRS adoption, we provide evidence that IFRS convergence improves earning quality. In particular, we find a significant decrease in the absolute value of discretionary acccruals in the partial IFRS-convergence period (2007-2011), whereas this effect is restrictive after the complete IFRS- implementation.

Do globalisation and adoption of IFRS by banks in Africa lead to less earnings management?

2019 ◽  
Vol 17 (2) ◽  
pp. 222-248 ◽  
Author(s):  
Mohammed Amidu ◽  
Haruna Issahaku
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Information Quality ◽  
Accounting Information ◽  
Financial Statements ◽  
International Standards ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Accounting Information Quality ◽  
National Economies

Purpose This paper aims to analyse the implications of globalisation and the adoption of international standards (International Financial Reporting Standards [IFRS]) for accounting information quality. Design/methodology/approach This paper uses a sample of 329 banks across 29 countries leading up to and beyond the implementation of IFRS to test for related hypotheses. Findings First, banks’ financial statements are prepared on the basis of international standards as national economies are integrated when social norms are diffused. Building on these results, the second test suggests that the relatively high-quality earnings among banks in Africa during the period is attributable to the adoption of and interaction of IFRS with globalisation and the strategy of banks to diversify within and across interest and non-interest income. Originality/value The authors investigate how globalisation and the adoption of IFRS affect accounting information quality.

scholarly journals Relationship between the application of IFRS and the accounting information quality in Jordan

2020 ◽  
Vol 17 (4) ◽  
pp. 111-120
Author(s):  
Qasim Ahmad Alawaqleh
Keyword(s):  
Financial Reporting ◽  
Trading Volume ◽  
Information Quality ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Reporting Standards ◽  
Industrial Companies ◽  
Accounting Information Quality ◽  
Independent Variable ◽  
The Relationship

The study aimed to find out the relationship between the application of international financial reporting standards (IFRS) and the accounting information quality (AIQ) in Jordan. The research data was collected from 59 industrial companies listed on the Amman Stock Exchange (ASE) between 2010 and 2018. Panel data was used to measure an independent variable (the application of IFRS), and a questionnaire (a 5-point Likert scale) was applied to measure a dependent variable (AIQ). Multiple regression was used to test hypotheses. The study concluded that the application of IFRS in terms of earnings management and trading volume had a positive relationship with AIQ. Finally, the study recommended validating the transparency of financial reporting to improve the efficiency of the Jordanian financial market.

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