scholarly journals International financial reporting standards (IFRS) adoption in Vietnam: If, when and how?

2014 ◽  
Vol 11 (4) ◽  
pp. 428-436
Author(s):  
Duc Hong Thi Phan ◽  
Bruno Mascitelli ◽  
Meropy Barut
Keyword(s):  
Financial Reporting ◽  
Big Bang ◽  
Effective Response ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Accounting Practitioners ◽  
Mandatory Adoption ◽  
Optimal Approach ◽  
Voluntary Adoption ◽  
The Big Bang

The paper examines the perceptions of Vietnamese accounting practitioners and academics regarding the optimal approach and timeline of IFRS adoption in Vietnam. Perceptions were obtained and analysed from 3,000 questionnaires sent to Vietnamese auditors, accountants, and accounting academics across Vietnam in 2012. A total of 728 usable responses were received producing an effective response rate of 24 per cent. The majority of the respondents considered that IFRS adoption should be permitted for voluntary adoption rather than mandatory adoption. The results indicate that the staggered convergence approach is more optimal than the big bang approach of IFRS adoption. A five year period for transition and preparation with some difficulties and obstacles associated with IFRS implementation is anticipated. The findings will assist accounting practitioners, educators, and policy makers to prepare themselves for the implications of IFRS convergence and adoption.

scholarly journals IFRS Adoption in Developing Countries: What Is the Impact?

2018 ◽  
Vol 8 (2) ◽  
pp. 278
Author(s):  
Chris D. Gingrich ◽  
Leah Kratz ◽  
Ryan Faraci
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Business Leaders ◽  
Global Competitiveness ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Accounting Environment ◽  
Mandatory Adoption ◽  
The Impact ◽  
Financial Environment

This study explores the impact of mandatory adoption of the International Financial Reporting Standards (IFRS) in developing countries on business leaders’ perceptions of the overall accounting and financial environment. The study employs survey data from the World Economic Forum’s Global Competitiveness Report to gauge business leaders’ perceptions of the accounting and financial environment. Eight countries across Latin America, Africa, and Asia comprise case studies, all of whom recently adopted mandatory IFRS use for publicly listed companies. Each survey variable is tracked over time, comparing pre and post IFRS adoption, vis-à-vis the same variable in a control country that did not adopt IFRS. IFRS adoption shows mostly positive impacts on the accounting environment in four cases. The impact of adoption in the other three countries is mostly insignificant. These results should encourage policymakers in developing countries to improve auditing and enforcement practices to increase the likelihood of positive results from IFRS adoption.

scholarly journals International financial reporting standards (IFRS) adoption and oil & gas companies performance in Nigeria

2017 ◽  
Vol 5 (2) ◽  
pp. 146 ◽  
Author(s):  
Aminu Abdullahi ◽  
Musa Yelwa Abubakar ◽  
Sunusi Sa’ Ad Ahmad
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Reporting Quality ◽  
Easy Access ◽  
Debt Ratio ◽  
Return On Equity ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
Oil And Gas Companies

This study investigates the effect of IFRS adoption on the performance of oil and gas marketing companies in Nigeria. The study utilise financial statements of a sample of eight (8) oil and gas companies operating in the country. These companies were purposively selected due to availability of data. Firms’ performance was proxied by Profit Margin (PM), Return on Assets (ROA) and Return on Equity (ROE) ratios and were considered as dependent variables to be determined by reporting regime (RR) as independent variable. While Current Ratio (CR), quick Test (QT), Total Debt Ratio (TDR) Earnings per Share (EPS) and Equity Debt Ratio (EDR) are use as control variables. The ratios were computed and compared for 4 years (2010 to 2011) before mandatory IFRS adoption and 2012 to 2013 often mandatory adoption OLS, regression with help of eviews 9 was employed for the analysis. The study reveals IFRS adoption has not improved the performance of oil and gas companies in Nigeria. The paper recommended that, oil and gas companies should continue to comply with provisions of IFRS as it will improve their reporting quality which may also improve their performance as result of more investment flow, easy access to capital and comparability.

Does Mandatory IFRS Adoption Improve Information Comparability?

2012 ◽  
Vol 87 (5) ◽  
pp. 1767-1789 ◽  
Author(s):  
Rita W. Y. Yip ◽  
Danqing Young
Keyword(s):  
Financial Reporting ◽  
Information Transfer ◽  
Institutional Environment ◽  
Data Availability ◽  
The European Union ◽  
Accounting Data ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
Cross Country

ABSTRACT This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union significantly improves information comparability in 17 European countries. We employ three proxies—the similarity of accounting functions that translate economic events into accounting data, the degree of information transfer, and the similarity of the information content of earnings and of the book value of equity—to measure information comparability. Our results suggest that mandatory IFRS adoption improves cross-country information comparability by making similar things look more alike without making different things look less different. Our results also suggest that both accounting convergence and higher quality information under IFRS are the likely drivers of the comparability improvement. In addition, we find some evidence that cross-country comparability improvement is affected by firms' institutional environment. Data Availability: Data are available from commercial providers (Worldscope, DataStream, and I/B/E/S).

scholarly journals Compliance with international financial reporting paradigm: A tale of two transition paths

2014 ◽  
Vol 11 (4) ◽  
pp. 338-354
Author(s):  
Suresh Ramachandra ◽  
Karin Olesen ◽  
Anil Kumar. Narayan ◽  
Alexander Tsoy
Keyword(s):  
Transition Economies ◽  
Financial Reporting ◽  
Specific Reference ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Increasing Trend ◽  
Transition Paths ◽  
Voluntary Adoption ◽  
International Accounting Standard

This study assesses the effectiveness of contrasting regulatory approaches taken by two transition economies, namely Russia and Kazakhstan, to bring about the organisational changes prompted by International Financial Reporting Standards (IFRS). Taking International Accounting Standard (IAS) 36, with specific reference to impairment of goodwill, this paper evaluates the compliance patterns resulting from voluntary adoption by Russia and the mandated approach of Kazakhstan. The results indicate an increasing trend in the levels of compliance by Russian and Kazakhstan firms with Russian firms surpassing the latter which is argued to be due to the contrasting approaches to IFRS adoption in both countries. Policy and regulatory implications to transition countries contemplating on shifting to the principles based paradigm is also discussed.

Real Effects of Intangibles Capitalization—Empirical Evidence from Voluntary IFRS Adoption in Japan

2020 ◽  
Vol 19 (3) ◽  
pp. 19-36
Author(s):  
Yoshiaki Amano
Keyword(s):  
Financial Reporting ◽  
Intangible Assets ◽  
Intangible Asset ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Real Effects ◽  
Ifrs Adoption ◽  
Intangible Investments ◽  
Voluntary Adoption ◽  
The Relationship

ABSTRACT This study examines how firm behaviors are affected by the voluntary adoption of International Financial Reporting Standards (IFRS) in Japan, which has expanded the scope for the capitalization of intangible assets compared with the Japanese Generally Accepted Accounting Principles. Prior research suggests that capitalization of intangibles is preferred by firms with larger intangibles and that it enables them to increase intangible investments. Using empirical data from Japanese IFRS adopters, this study analyzes the relationship between firms' intangible asset amounts and their voluntary adoption of IFRS. The results show that (1) the more intangibles firms possess, the more likely they are to adopt IFRS, and (2) once firms decide to adopt IFRS, their intangible assets increase compared with matched non-adopters. Additional analysis shows that this increase is partly attributable to an increased volume and value of mergers and acquisitions after IFRS adoption, suggesting that the real actions of the adopters changed.

A Review of the Literature on IFRS Adoption From the Perspective of the Value Relevance

2019 ◽  
pp. 367-394 ◽  
Author(s):  
Melik Ertuğrul
Keyword(s):  
Literature Review ◽  
Financial Reporting ◽  
Value Relevance ◽  
The European Union ◽  
Archival Research ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Comprehensive Picture ◽  
Mandatory Adoption ◽  
The Impact

International Financial Reporting Standards (IFRS)-based financial reporting has become widespread all around the world especially after its mandatory adoption in the European Union in 2005. There are several objectives of IFRS-based financial reporting, all of which depends on the idea of a single set of high-quality standards as frequently highlighted by promoters of IFRS. This literature review depicts a comprehensive picture of the archival research on the impact of IFRS-based reporting on capital markets from the perspective of the value relevance (VR) concept. First, the VR concept, as well as models employed to measure the VR, are described. Afterwards, selected studies of the archival research are grouped, summarized, and discussed. Finally, archival research is methodologically analyzed by considering different dimensions. All in all, this literature review provides information on IFRS adoption from the perspective of the VR.

IFRS adoption and accounting conservatism in Latin America

2020 ◽  
Vol 33 (3/4) ◽  
pp. 301-320
Author(s):  
Harold Lopez ◽  
Mauricio Jara ◽  
Adriana Cabello
Keyword(s):  
Latin America ◽  
Latin American ◽  
Financial Reporting ◽  
Accounting Conservatism ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of IFRS mandatory adoption on accounting conservatism and to shed light on the drivers of such impact. Design/methodology/approach Using a sample of listed firms for five Latin American countries, the authors analyze the relation between mandatory adoption of International Financial Reporting Standards and the conditional accounting conservatism of earnings. Findings The authors find evidence that IFRS adoption boosts earnings conservatism. This result is robust and heterogeneous. The results also show that the effect of IFRS differs across firms and countries. Specifically, the impact of IFRS adoption is higher for low-earnings-quality firms and for firms with high levels of investment opportunities. Practical implications The results suggest that IFRS adoption in Latin America has enhanced comparability of financial information both across and within countries. Originality/value This paper contributes to the literature by providing new evidence on the drivers of the impacts of IFRS adoption in emerging markets.

scholarly journals Mandatory IFRS Adoption and Real/Accruals Bases Earnings Management in the UK

2021 ◽  
Vol 10 (1) ◽  
pp. 25-39
Author(s):  
Mohammad I. Almaharmeh ◽  
Adel Almasarwah ◽  
Ali Shehadeh
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Robust Regression ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Uk

Here, the link between the mandatory adoption of International Financial Reporting Standards (IFRS) and Real Earnings Management (REM), as well as Accrual Earnings Management (AEM), will be examined for non-financial listed firms in the London Stock Exchange. Robust regression analysis of the mandatory IFRS adoption will be conducted on the panel data, as well as earnings management using three AEM models and three REM models. Mixed results with respect to the qualities of AEM and REM were notably garnered, with mandatory IFRS adoption positively relating to the Roychowdhury of abnormal cash flow and the Roychowdhury of abnormal production. Meanwhile, the Roychowdhury of abnormal discretionary expenses, standard Jones, and Kothari negatively related to mandatory IFRS adoption, whilst modified Jones showed an insignificant relation to mandatory IFRS adoption. Changes in IFRS adoption and guidelines for UK firms may have an impact on AEM and REM, and, as predicted, mandatory IFRS adoption mostly affects the Kothari model followed by the standard Jones model as proxies for accounting earnings quality.

scholarly journals Mandatory IFRS Adoption And Financial Analysts' Information Environment: Evidence From Korean Market

2016 ◽  
Vol 32 (5) ◽  
pp. 1387
Author(s):  
Saerona Kim ◽  
Noolee Kim ◽  
Kyoung-Min Kwon
Keyword(s):  
Financial Reporting ◽  
Financial Analysts ◽  
Forecast Accuracy ◽  
Information Environment ◽  
Analyst Coverage ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Information Sets ◽  
Mandatory Adoption ◽  
Korean Market

The paper examines the effects of the mandatory adoption of International Financial Reporting Standards (IFRS) on financial analysts’ information environment, specifically on analysts forecast accuracy in the Korean market. We find that financial analysts’ forecast accuracy improves after the mandatory IFRS adoption. We further investigate the source of observed accuracy enhancements and find that the improved forecast accuracy is attributable to the increased precision in analysts’ information sets for KOSPI firms and increased opportunity for earnings management for KOSDAQ firms. We also find that the analyst coverage in Korean market is reduced after mandatory IFRS adoption.

scholarly journals Mandatory Financial Reporting and Voluntary Disclosure: The Effect of Mandatory IFRS Adoption on Management Forecasts

2015 ◽  
Vol 91 (3) ◽  
pp. 933-953 ◽  
Author(s):  
Xi Li ◽  
Holly I. Yang
Keyword(s):  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Earnings Forecasts ◽  
Management Forecasts ◽  
Market Demand ◽  
Management Earnings Forecasts ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
Disclosure Incentives

ABSTRACT This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-differences analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, increased shareholder demand, and increased analyst demand. We find evidence consistent with all three channels.

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