scholarly journals The adoption of IFRS in publicly listed enterprises of high and medium capitalization and the impact of the size of the audit firm in Greece

2014 ◽  
Vol 11 (4) ◽  
pp. 707-716 ◽  
Author(s):  
Michail Pazarskis ◽  
Andreas Koutoupis ◽  
George Drogalas ◽  
Konstantinos Tsakiris
Keyword(s):  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Audit Firm ◽  
The Past ◽  
Big 4 ◽  
The Difference ◽  
Athens Stock Exchange ◽  
The Impact

In 2002, developments in the global markets during the past decades have highlighted the need for common accounting standards among companies all around the world so as the financial statements to be comparable. From 2005 onwards the Greek Companies listed on the Athens Exchange was an accounting “revolution” of the 21st century, given the difference in philosophy between the Greek GAAP and the International Accounting Standards-IAS (next, IFRS). This study evaluates the implementation of IFRS on the financial statements of Greek publicly listed companies of high and medium capitalization, which are companies that are included in the FTSE 20 and FTSE 40 indexes of the Athens Stock Exchange-ASE, respectively. Also, for those firms we examined the effect of the size of the audit firm. The research was conducted based on the analysis of thirteen ratios. According to our analysis only few of the ratios have changed significantly. Finally, regarding the impact of the size of the audit firm the results reveal controversy with the present bibliography concerning “Big 4” in comparison with “non-Big 4” firms in Greece

A Comparison of Reported Earnings Under Chinese GAAP vs. IAS: Evidence from the Shanghai Stock Exchange

1999 ◽  
Vol 13 (2) ◽  
pp. 91-111 ◽  
Author(s):  
Charles J. P. Chen ◽  
Ferdinand A. Gul ◽  
Xijia Su
Keyword(s):  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting ◽  
International Accounting Standards ◽  
Empirical Examination ◽  
Accounting Earnings ◽  
The Difference ◽  
Reported Earnings

This paper reports the results of an empirical examination of the difference between earnings based on Chinese GAAP and those based on International Accounting Standards (IAS). Specifically, the study determines how current Chinese accounting standards are different from the IAS, whether these differences are systematically biased toward under- or overstated earnings, and which items from the financial statements contributed most to these differences. The findings suggest that reported accounting earnings based on current Chinese GAAP are significantly different from those based on IAS. On average, the reported earnings determined under the Chinese GAAP are 20–30 percent higher than earnings reported under IAS. After restatement, 15 percent of the B-share companies changed from a reported profit to a reported loss. The findings suggest that the differences between the two sets of earnings are caused by differences in accounting standards and financial rules, opportunistic applications of Chinese GAAP, and unusual market-wide events. An analysis of recently promulgated accounting standards indicates that the difference between the two sets of accounting earnings is likely to be significantly reduced from those reported for 1998 as a result.

scholarly journals A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting

2016 ◽  
Vol 6 (4) ◽  
pp. 102-114 ◽  
Author(s):  
Newman Wadesango ◽  
Edmore Tasa ◽  
Khazamula Milondzo ◽  
Ongayi Vongai Wadesango
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Conclusive Evidence ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Ifrs Adoption ◽  
The Impact

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

scholarly journals Impact Of IASB & FASB On Financial Statements

2011 ◽  
Vol 8 (8) ◽  
Author(s):  
Veronica Paz ◽  
Thomas Griffin
Keyword(s):  
Conceptual Framework ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
The Impact ◽  
International Accounting Standards Board

The purpose of this research is to determine the impact of material differences in the conceptual framework of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) on the financial statements.

scholarly journals Analysis of the impact of adopting international accounting standards in predicting the insolvency of businesses listed on the BM&FBovespa brazilian stock exchange

2018 ◽  
Vol 17 (2) ◽  
pp. 397-422
Author(s):  
Diego Rafael Stupp ◽  
Leonardo Flach ◽  
Luísa Karam de Mattos
Keyword(s):  
Stock Exchange ◽  
Statistical Tests ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Indicators ◽  
Explanatory Variables ◽  
Average Accuracy ◽  
Before And After ◽  
The Impact

Abstract: The financial statements of Brazilian companies have been transformed with the adoption of international accounting standards, and it was expected that this would offer more reliable information for decision-making. This study aims to analyze the influence of the adoption of international accounting standards in predicting corporate insolvency. The sample comprises 94 Brazilian companies listed on BM&FBovespa, divided into two groups: the first group has companies considered insolvent and the second group has solvent companies. For each insolvent company we selected another enterprise of the same segment, based on the nearest value of the total assets. The collected data comprised the period of 31 December 2004 to 31 December 2013. The explanatory variables include 29 financial indicators and the methodological procedure was the statistical method called Discriminant Analysis. The application of statistical tests on separate samples in periods before and after the adoption of IFRS, led to the conclusion that there was a considerable improvement in predicting insolvency after the adoption of international accounting standards, because the average accuracy increased from 73.5% to 82.1%.Keywords: Insolvency forecast. Financial indicators. International accounting standards.Análise do impacto da adoção das normas internacionais de contabilidade na previsão de insolvência de empresas listadas na BM&FBovespaResumo: As demonstrações contábeis das empresas brasileiras foram revolucionadas com a adoção das normas internacionais de contabilidade e espera-se que tragam informações mais confiáveis para a tomada de decisão. O objetivo com este trabalho foi analisar a influência da adoção das normas internacionais de contabilidade na previsão de insolvência empresarial. A amostra compreende 94 empresas brasileiras listadas na BM&FBovespa, divididas em dois grupos: um com empresas consideradas insolventes e outro com as empresas solventes. Para cada empresa insolvente foi selecionada outra do mesmo segmento, com o valor do ativo mais próximo. Os dados coletados abrangem o período de 31 de dezembro de 2004 a 31 de dezembro de 2013. As variáveis explicativas compreendem 29 indicadores contábeis e o método aplicado baseia-se no método estatístico de Análise Discriminante. A aplicação de testes estatísticos em amostras separadas em períodos anteriores e posteriores à adoção das IFRS permitiu verificar que houve uma melhoria considerável na previsão de insolvência após a adoção das normas internacionais de contabilidade, pois a média de acerto aumentou de 73,5% para 82,1%.Palavras-chave: Previsão de insolvência. Indicadores contábeis. Normas internacionais de contabilidade.

‘Big 4’ influence on audit market

2020 ◽  
Vol 7 (54) ◽  
pp. 143-156
Author(s):  
Marta Tache
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Business Group ◽  
Anova Analysis ◽  
Group Influence ◽  
Audit Firm ◽  
Financial Reporting Standards ◽  
Audit Market ◽  
Big 4 ◽  
The Impact

AbstractThe main purpose of this paper is to determine the impact that Big 4 companies have had after the adoption of International Financial Reporting Standards (IFRS) became mandatory on the audit market. Thus, after thorough research of the specialised studies, the impact of the financial reporting based on IFRS is analysed, while considering that Big 4 companies have created a strong monopoly that led to several changes on the audit market. All the companies listed on the Bucharest Stock Exchange that traded premium shares from 2011 to 2019 were analysed. With the use of ANOVA analysis, this paper verifies if the profitability, shareholders’ funds, firm size and the size of the business group influence the choice of the audit firm. Our results confirm that the choice of an audit firm is influenced by the shareholders’ funds, number of employees and the size of the business group. Besides, this paper presents an analysis of the changes that have occurred from 2011–2019 on the audit market of Romania.

ANALISIS KOMPARASI KINERJA KEUANGAN PERUSAHAAN SEBELUM DAN SESUDAH PENERAPAN SAK KONVERGENSI IFRS (Studi Kasus pada Perusahaan Farmasi yang Terdaftar di BEI)

2016 ◽  
Vol 2 (1) ◽  
Author(s):  
Alin Adinda Herma Wiharno Teti Rahmawati
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Information ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Before And After ◽  
Quality Of Reports ◽  
The Difference

Convergenceof IFRS into local accounting standards became a necessity for each country. This is due to the rapid developmental technology and globalization are demanding international accounting standards, with the aim of producing financial information with good quality and generally accepted. The application of IFRS as reporting standards is believed to improve the quality of reports keua-ngan company basis in the measurement of financial performance.The research objective was to determine the difference in financial performance as measured by the ratio of profitability, liquidity, solvency, and activities before and after the implementation of IFRS on the Company's GAAP ConvergencePharmaceuticals Listed in Indonesia Stock Exchange Period 2007-2014.The results showed that tdak there are significant differences related to the financial performance as measured by the ratio of profitability, liquidity, solvency, as well as the ratio of activity before and after the implementation of IFRS on the Company's GAAP ConvergencePharmaceuticals Listed in Indonesia Stock Exchange Period 2007-2014.

scholarly journals Auditor Style Dan Komparabilitas Laporan Keuangan

2019 ◽  
Vol 1 (1) ◽  
pp. 109-122
Author(s):  
Riski Wulandari ◽  
Henri Agustin ◽  
Mayar Afriyenti
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Accounting Standard ◽  
Audit Firm ◽  
Internal Working ◽  
Big 4 ◽  
Audit Firms ◽  
Reported Earnings ◽  
Working Rules

Auditor style defined as a unique set of internal working rules for the interpretation and enforcement of accounting standard within the auditor’s clienteles belongs to particular audit firm, especially Big 4 audit firms. As a consequence, financial statements of two companies audited by the same Big 4 auditor, subjected to the same audit style, tend to have comparable earnings which have a more similar accrual, than two companies audited by two different Big 4 auditors with different styles. This research attempts to examine the effect of this auditor style issue on manufacturing financial statement comparability listed in Indonesian Stock Exchange. For five years’ observations, through 2012-2016 this research demonstrated a result with auditor style affects the comparability of reported earnings within a Big 4 auditor’s clientele and found no effect of auditor style on financial statement comparability within a non-Big 4 auditor’s clientele

scholarly journals Auditors’ perceptions of their roles and responsibilities: The impact of exposure to litigation risk

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1435-1444 ◽  
Author(s):  
Ahmed Abdullah Saad Al-Dhubaibi
Keyword(s):  
Financial Statements ◽  
Third Parties ◽  
Litigation Risk ◽  
Certified Public Accountants ◽  
Audit Firm ◽  
Roles And Responsibilities ◽  
Big 4 ◽  
Audit Firms ◽  
Public Accountants ◽  
The Impact

The purpose of this study is to investigate the perception of auditors regarding their responsibilities and potential liabilities to third parties in the case of failure to detect fraud/material misstatements and report the findings to the appropriate party. The study proposes that auditors’ perception of their own responsibilities will depend on the level of litigation threat expected by the auditor based on his or her position in the audit firm. The questionnaire was sent to the big 4 audit firms, the global audit firms other than the big 4, and to 189 different sized local audit firms registered with the Saudi Organization of Certified Public Accountants (SOCPA). The findings of this study revealed significant variations among auditors with regards to their perceptions of their own responsibilities and liabilities to financial statements’ users affected by their expected level of exposure to litigation risk.

scholarly journals Financial Reporting Impact Of The Operating Lease Classification

2012 ◽  
Vol 28 (6) ◽  
pp. 1509 ◽  
Author(s):  
John Kostolansky ◽  
Dora Altschuler ◽  
Brian B. Stanko
Keyword(s):  
North America ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Operating Leases ◽  
The Impact

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are preparing to make changes to accounting standards for leasing that will have a significant impact on the financial statements of a large number of companies. The proposed standard will eliminate the operating lease classification, and if passed, companies using this classification will be required to report additional assets and liabilities on the balance sheet. This study estimates the impact of this change in accounting standards on the financial statements and several key financial ratios for an extensive sample of companies and industries from the Compustat North America database. It is important that users of financial statements understand and are prepared for these changes prior to implementation, particularly for industries in which operating leases are heavily utilized.

scholarly journals Is Capitalization of Operating Lease Way to Increase of Comparability of Financial Statements Prepared in Accordance with IFRS and US GAAP?

2015 ◽  
Vol 63 (2) ◽  
pp. 507-514
Author(s):  
Hana Bohušová
Keyword(s):  
Financial Analysis ◽  
Negative Impact ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Statements ◽  
Common Effort ◽  
One Year ◽  
Lease Contracts ◽  
The Impact ◽  
Us Gaap

The paper is concerned with an evaluation of possibilities of companies using operating lease and prepared financial statements under IFRS or US GAAP comparison. The data of non-financial companies listed on the Prague Stock Exchange and reporting information on operating lease in accordance with IAS 17 are used. The study presents the impact of operating lease capitalization on companies’ financial statements and financial analysis ratios. The results show a negative impact of operating lease capitalization on financial analysis ratios. The study was motivated by a common effort of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to develop the common standard for Lease reporting. In 2013, a joint exposure dra of standard (ED2013/6) Leases was published. Under the new standard, it is required to capitalize all lease agreements over one year. The distinction between operating leases and finance leases should not exist anymore. The study was carried out to demonstrate the potential impact resulting from the proposed adoption of the new accounting standard concerning mandatory capitalization of all lease contracts.

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