scholarly journals INTERNATIONAL FINANCIAL REPORTING STANDARDS AND EARNINGS MANAGEMENT: COMPARATIVE STUDY OF PRE-POST FULL CONVERGENCE OF IFRS IN MALAYSIA

2020 ◽  
Vol 7 (02) ◽  
Keyword(s):  
Comparative Study ◽  
Earnings Management ◽  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards

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

International Financial Reporting Standards and Real Earnings Management

2019 ◽  
Vol 9 (10) ◽  
pp. 281-292
Author(s):  
Ooi Chee Keong ◽  
Shafi Mohamad ◽  
Syed Ehsanullah
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Positive Association ◽  
International Standards ◽  
Real Earnings Management ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Industrial Sectors ◽  
The Impact

We have attempted to investigate the impact of adopting the International Financial Reporting Standards (IFRS) on real earnings management (REM) in this study, along with a thorough examination to determine the relationship between IFRS and REM. The study is primarily based on 178 listed firms from different industrial sectors in Malaysia, wherein IFRS had finally been implemented in 2008. For more adequate estimations and requisite results, we have included data of eight years i.e., 4 years before the implementation of IFRS and 4 years after its implementation, in our sample. Our results showed positive association between IFRS and REM, accordingly, precisely suggesting that after the implementation of IFRS, these firms were found to be engaged more in less detectable REM, and also exhibiting quite a poor financial reporting quality apparently below international standards.

scholarly journals The Impact of International Financial Reporting Standards (IFRS) Adoption on The Accounting Quality of Listed Companies In Kenya

2011 ◽  
Vol 1 (1) ◽  
pp. 212 ◽  
Author(s):  
Erick Rading Outa
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Value Relevance ◽  
Listed Companies ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Accounting Quality ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Timely Loss Recognition

AbstractThis study seeks to establish if the adoption of International Financial Reporting Standards (IFRS) in Kenya has been associated with higher accounting quality for listed companies. The International Accounting Standards Board (IASB), in its objectives and preamble, supposes that the beneficial effects from IFRS adoption include transparency, accounting quality and reduced cost of capital. Based on these assumptions, this study applied accounting quality measures; earnings management, timely loss recognition and value relevance to find out whether the adoption of IFRS has led to improvements in accounting quality in companies listed in Kenya. The methodology is based on prior literature definition of metrics of accounting quality mainly earnings management, timely loss recognition and value relevance. The study differs from the previous ones by overcoming difficulties in controlling for confounding factors faced in previous studies which could have led to less reliable results. Three out of the eight metrics indicated that quality had marginally improved while five indicated that it had marginally declined. These mixed outcomes are very much in line with findings in other studies and the study contributes to the debate by explaining why accounting quality outcomes are still not consistent with IFRS promises in spite of improved test conditions. Key words: IFRS; IAS; accounting quality; earnings management; timely loss recognition;

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