IFRS Adoption Approaches and Accounting Quality

IF 2 Q2 BUSINESS, FINANCE
J. Agana, Solomon George Zori, Anna Alon
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引用次数: 0

Abstract

Synopsis The research problem This paper sought to ascertain whether IFRS adoption approaches impact accounting quality. Specifically, as some countries utilize IFRS without modifications while others modify IFRS to suit their local context, we aimed to test whether these differences in IFRS adoption approaches have implications for accounting quality. Motivation Prior studies focused on the impact of IFRS adoption on accounting quality without considering the different approaches used by the adopting jurisdictions. Such differences affect the version of IFRS utilized at the country level. We refer to jurisdictions as adopters of IFRS when the IASB’s version of IFRS is utilized without modifications. In contrast, jurisdictions where the IFRS standards are modified at the national or regional level are called adapters. We also recognize the role of enforcement; thus, we first examined whether IFRS adoption and enforcement influence accounting quality. Second, we compared the accounting quality for adopters and adapters of the standards. The test hypotheses Our first hypothesis is that the quality of enforcement has a stronger effect on accounting quality than the adoption of IFRS. Second, adapters will have higher accounting quality than adopters of IFRS. Target population We focused on the reporting of companies in African countries. These jurisdictions have not been sufficiently examined in prior studies. Adopted methodology We use panel data estimation, specifically, random-effects model. Analyses We examined accounting quality for pre- and post-IFRS reporting based on 3946 firm-year observations from six African countries over 18 years. Our analysis of the adoption approach is based on 3736 firm-year observations for companies utilizing IFRS. Except for Egypt, which used a modified version of IFRS, other countries in our sample utilized the IASB’s version of IFRS. Using various standard metrics for accounting quality (earnings management, timely loss recognition, and value relevance), we ascertained whether adaption is associated with higher accounting quality compared to adoption. Findings The results indicate that IFRS adoption and enforcement proxy are not associated with accounting quality, but other institutional factors are. Adoption of the standards is less important for accounting quality than the existing institutions. With regard to the adoption approach used, adopters demonstrated higher accounting quality for accounting-based measures, less income smoothing, and more timely loss recognition than the adapters. The adopters also exhibited greater value relevance, which suggests that their reporting was better able to capture information that affects firm value. The adoption approaches may influence different dimensions of accounting quality, and the resulting differences are important for users, companies, and standard setters to consider.
IFRS采用方法与会计质量
本文试图确定采用国际财务报告准则的方法是否会影响会计质量。具体而言,由于一些国家不经修改就使用国际财务报告准则,而另一些国家则根据当地情况修改国际财务报告准则,我们的目的是检验这些采用国际财务报告准则方法的差异是否会对会计质量产生影响。动机先前的研究侧重于采用国际财务报告准则对会计质量的影响,而没有考虑采用司法管辖区使用的不同方法。这些差异影响了在国家一级使用的国际财务报告准则的版本。当国际会计准则理事会(IASB)的国际财务报告准则版本未经修改地使用时,我们将司法管辖区称为国际财务报告准则的采用者。相比之下,在国家或地区层面修改国际财务报告准则的司法管辖区被称为适应者。我们也认识到执法的作用;因此,我们首先考察了国际财务报告准则的采用和执行是否会影响会计质量。其次,我们比较了准则采纳者和适应者的会计质量。我们的第一个假设是,执行质量比采用国际财务报告准则对会计质量的影响更大。其次,套用者将比采用国际财务报告准则者具有更高的会计质量。我们关注的是非洲国家公司的报告。这些司法管辖区在以前的研究中没有得到充分的审查。采用的方法采用面板数据估计,即随机效应模型。我们基于6个非洲国家在过去18年中3946家公司的年度观察,检查了采用国际财务报告准则之前和之后报告的会计质量。我们对采用方法的分析是基于对采用国际财务报告准则的公司的3736个公司年度观察。除了埃及使用了国际财务报告准则的修改版本外,我们样本中的其他国家使用了国际会计准则理事会的国际财务报告准则版本。使用会计质量的各种标准指标(盈余管理、及时损失确认和价值相关性),我们确定了与采用相比,适应是否与更高的会计质量相关。结果表明,国际财务报告准则的采用和执行代理与会计质量无关,但其他制度因素与会计质量相关。对于会计质量而言,采用新准则的重要性不如现有制度。关于采用的采用方法,采用者在基于会计的计量方面表现出更高的会计质量,收入平滑程度更低,损失确认更及时。采用者也表现出更大的价值相关性,这表明他们的报告能够更好地捕捉影响公司价值的信息。采用方法可能影响会计质量的不同维度,由此产生的差异对于使用者、公司和准则制定者来说是重要的。
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来源期刊
CiteScore
1.20
自引率
0.00%
发文量
19
期刊介绍: The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.
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