scholarly journals Network Effects in Countries' Adoption of IFRS

2014 ◽  
Vol 89 (4) ◽  
pp. 1517-1543 ◽  
Author(s):  
Karthik Ramanna ◽  
Ewa Sletten
Keyword(s):  
European Union ◽  
Network Effects ◽  
Accounting Standards ◽  
Data Availability ◽  
Sample Period ◽  
The European Union ◽  
Ifrs Adoption ◽  
Institutional Differences ◽  
Alternative Hypotheses ◽  
Economic Ties

ABSTRACT: If the differences in accounting standards across countries reflect relatively stable institutional differences, why did several countries rapidly adopt IFRS in the 2003–2008 period? We test the hypothesis that perceived network benefits from the extant worldwide adoption of IFRS can explain part of a country's shift away from local accounting standards. We find that perceived network benefits increase the degree of IFRS harmonization among countries and that smaller countries have a differentially higher response to these benefits. Further, economic ties with the European Union are a particularly important source of network effects. The results, robust to numerous alternative hypotheses and specifications, suggest IFRS adoption was self-reinforcing during the sample period, which, in turn, has implications for the consequences of IFRS adoption. Data Availability: Most data are available from public sources identified in the text; hand-collected data are available upon request.

THE ROLE OF NON-GOVERNMENTAL ORGANIZATIONS (NGOs) AS INTERMEDIARIES OF THE EUROPEAN UNION DECISION TO ADOPT INTERNATIONAL ACCOUNTING STANDARDS: 1973–2002

2016 ◽  
Vol 43 (2) ◽  
pp. 59-127 ◽  
Author(s):  
Devrimi Kaya ◽  
Robert J. Kirsch ◽  
Klaus Henselmann
Keyword(s):  
European Union ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
The European Union ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
History Of ◽  
The Many

This paper analyzes the role of non-governmental organizations (NGOs) as intermediaries in encouraging the European Union (EU) to adopt International Accounting Standards (IAS). Our analysis begins with the 1973 founding of the International Accounting Standards Committee (IASC), and ends with 2002 when the binding EU regulation was approved. We document the many pathways of interaction between European supranational, governmental bodies and the IASC/IASB, as well as important regional NGOs, such as the Union Européenne des Experts Comptables, Économiques et Financiers (UEC), the Groupe d'Etudes des Experts Comptables de la Communauté Économique Européenne (Groupe d'Etudes), and their successor, the Fédération des Experts Comptables Européens (FEE). This study investigates, through personal interviews of key individuals involved in making the history of the organizations studied, and an extensive set of primary sources, how NGOs filled key roles in the process of harmonization of international accounting standards.

Does the Mandatory Adoption of IFRS Improve the Association between Accruals and Cash Flows? Evidence from Accounting Estimates

2018 ◽  
Vol 33 (1) ◽  
pp. 39-59
Author(s):  
Jimmy F. Downes ◽  
Tony Kang ◽  
Sohyung Kim ◽  
Cheol Lee
Keyword(s):  
Financial Reporting ◽  
Cash Flows ◽  
Data Availability ◽  
The European Union ◽  
Accounting Quality ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Accounting Estimates ◽  
Accounting Accruals ◽  
Future Cash Flows

SYNOPSIS We investigate the effect of mandatory International Financial Reporting Standards (IFRS) adoption in the European Union on the association between accounting estimates and future cash flows, a key concept of accounting quality within the International Accounting Standard Board conceptual framework. We find that the predictive value of accounting estimates improves after IFRS adoption. This improvement is largely driven by specific types of accounting estimates, such as accounts receivable, depreciation, and amortization expense. We also find that the improvement is concentrated in countries with larger differences between pre-IFRS domestic GAAP and IFRS. Our findings suggest that IFRS allow managers to exercise their judgment to provide information about future cash flows through the more subjective/judgmental portion of accounting accruals. JEL Classifications: M16; M49; O52. Data Availability: The data used in this study are from public sources identified in the study.

6. Electoral Systems and Direct Democracy

2021 ◽  
pp. 89-111
Author(s):  
Catherine E. De Vries ◽  
Sara B. Hobolt ◽  
Sven-Oliver Proksch ◽  
Jonathan B. Slapin
Keyword(s):  
European Union ◽  
Direct Democracy ◽  
Party System ◽  
Electoral Systems ◽  
Political Representation ◽  
Party Systems ◽  
The European Union ◽  
View Point ◽  
Institutional Differences ◽  
Over Time

This chapter starts off with an overview of the institutions that decide how citizens cast ballots, firstly, in elections, and secondly, directly for policy. The former is related to electoral systems and the latter to direct democracy. The chapter considers the implications of these institutions for party systems and political representation from the view point of the principal–agent framework. There is a large variety of electoral systems used in Europe. Most elections are held using the system of proportional representation. However, there are important institutional differences that need to be remembered. The chapter then goes on to examine the effects of electoral systems on the party system. This is carried out with electoral change over time in mind. Finally, the chapter turns to direct democracy and analyses the use of referendums, specifically with regard to the question of the European Union (EU).

scholarly journals The Impact of IFRS Adoption on Accounting Conservatism in the European Union

2016 ◽  
Vol 6 (1) ◽  
pp. 127 ◽  
Author(s):  
Daniel Zeghal ◽  
Zouhour Lahmar
Keyword(s):  
European Union ◽  
Empirical Study ◽  
Accounting Conservatism ◽  
International Standards ◽  
Good News ◽  
The European Union ◽  
Ifrs Adoption ◽  
Accounting Model ◽  
Year 2000 ◽  
The Impact

Purpose –The purpose of this study is to analyze mandatory IFRS adoption’s impact on accounting conservatism. Design/methodology/approach – Our empirical study is conducted on a sample of 15 European countries, observed from the year 2000 to 2010. We analyze both conditional and unconditional conservatism, which we measured, respectively, by timely bad news recognition as compared to recognition of good news and discretionary accruals. Findings – The results of the empirical study confirm a significant reduction of accounting conservatism in the IFRS adoption period. This reduction is affected by the accounting model prevailing in a particular country. Moreover, the study shows a reduction of the gap between the two accounting models in the post-IFRS adoption period. Practical implications – The results obtained would be relevant for many decision makers such as investors, standard setters, IASB, European Union countries as well as those wishing to adopt International Standards. Originality/value – Our study complements and enriches the existent literature about the impact of the International Standards adoption. It dresses an important issue in a relatively long period to better assess the impact of IFRS.

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).

Pension Obligations in the European Union: A Case Study for Accounting Policy

2017 ◽  
Vol 7 (3) ◽  
Author(s):  
Yuri Biondi ◽  
Marion Boisseau-Sierra
Keyword(s):  
European Union ◽  
Public Sector ◽  
Accounting Standards ◽  
Building Blocks ◽  
Critical Issue ◽  
Financial Supervision ◽  
The European Union ◽  
Comprehensive Overview ◽  
Member States ◽  
Public Sector Accounting

AbstractPension obligations constitute a critical issue for public finances and budgets. This is especially true for the European Union whose institutional mechanism aims to supervise Member States’ spending through centralised budgetary rules based upon financial covenants. In this context, accounting methods of recognition and measurement of pension obligations become an integral and critical aspect of Europe’s transnational budgetary and financial supervision. Drawing upon a comprehensive overview of pension management and regulation, this article aims to analyse the ongoing debate on accounting for pension obligations with a specific attention to the harmonization of European Public Sector Accounting Standards (EPSAS). While the European Commission has been favouring the ‘indisputable reference’ to the International Public Sector Accounting Standards (IPSAS), European Member States’ practices and views remain inconsistent with the normative solution imposed by the IPSAS 25, which favours and facilitates Definite Contribution pension schemes. In this context, we do summarise the IPSAS position mimicking the IFRS, review the pension’s accounting in national statistics and EPSAS debate, and provide some building blocks for a comprehensive model of accounting for pension obligations that admits and enables several viable modes of pension management.

scholarly journals Economic relations between Bulgaria and Serbia: Current state and opportunities

2020 ◽  
Vol 17 (4) ◽  
pp. 141-156
Author(s):  
Antoaneta Vassileva ◽  
Mirjana Stevanović ◽  
Milica Simić
Keyword(s):  
European Union ◽  
Statistical Data ◽  
Analytical Framework ◽  
Economic Cooperation ◽  
The European Union ◽  
Economic Relations ◽  
Current State ◽  
European Projects ◽  
Economic Ties ◽  
Desk Research

The main goal of this paper is to make a survey of the current state of the economic relations between Bulgaria and Serbia and to outline some recommendations for their future development. The analytical framework is based on a desk research of the economic cooperation between both countries and a study of several European projects in which they participate. Statistical data and information from official documents of the governments of Bulgaria and Serbia, as well as documents of the European Union have been used. The author does not aim to make just a comparative analysis but rather to look for the points of intersection of the mutual interests of both countries. The findings of the research enable the evaluation of the depth of economic cooperation between Bulgaria and Serbia and give grounds for conclusions about the prospects for expanding of their economic ties.

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