What are the important and affection of implementing international accounting standards?

Document Type : Review Paper

Authors

1 Associate Professor of Accounting, Alzahra University, Tehran

2 PhD Student of Accounting, University of Tehran, Tehran, Iran.

Abstract

The global challenge of business environments is essential the need for accountants and managers who be aware of the complex international financial issues and to have knowledge and information related to solving business-related issues, financial issues, and international investment. Recently, the study of international accounting, challenges and benefits is a significant issue and accountant have taken significant steps to create a consistent and same set of international accounting standards applicable to all companies and organizations, but the question is how much should moving towards convergence and internationalization, and what are the costs of this choice? In this paper, the study of financial and accounting literature about the implementation of international accounting standards or the change of national standards to international standards has examined the unknown and known effects of this event and the aim of this, is developing and promoting knowledge about the effects of convergence and harmonization of accounting standards.

Keywords

Main Subjects

References

Ahmed, A. S. , Neel, M. , & Wang, D. (2013). Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence. Contemporary Accounting Research, 30 (4) , 1344-1372.
Ali Hedayati1؛ Shohre Yazdani2؛ M. Hamed Khan Mohammadi, Identifying educational needs of Iranian Certified Public Accountants towards the Implementing of International Financial Reporting Standards, Journal of management system, Article 10, Volume 7, Issue 27, Summer 2018, Page 137-152 (In Persian).
Armstrong, C. S. , Barth, M. E. , Jagolinzer, A. D. , & Riedl, E. J. (2010). Market reaction to the adoption of IFRS in Europe. The accounting review, 85 (1) , 31-61.
Ball, R. , Li, X. , & Shivakumar, L. (2015). Contractibility and transparency of financial statement information prepared under IFRS: Evidence from debt contracts around IFRS adoption. Journal of Accounting Research, 53 (5) , 915-963.
Banker, R. D. , Huang, R. , & Natarajan, R. (2009). Incentive contracting and value relevance of earnings and cash flows. Journal of Accounting Research, 47 (3) , 647-678.
Beneish, M. D. , Miller, B. P. , & Yohn, T. L. (2012). The impact of financial reporting on equity versus debt markets: Macroeconomic evidence from mandatory IFRS adoption.
Biondi, Y. , & Suzuki, T. (2007). Socio-economic impacts of international accounting standards: an introduction. Socio-Economic Review, 5 (4).
Brüggemann, U. , Hitz, J. M. , & Sellhorn, T. (2013). Intended and unintended consequences of mandatory IFRS adoption: A review of extant evidence and suggestions for future research. European Accounting Review, 22 (1) , 1-37.
Burgstahler, D. C. , Hail, L. , & Leuz, C. (2006). The importance of reporting incentives: Earnings management in European private and public firms. The accounting review, 81 (5) , 983-1016.
Cascino, S. , & Gassen, J. (2015). What drives the comparability effect of mandatory IFRS adoption?. Review of Accounting Studies, 20 (1) , 242-282.
Chen, C. , Young, D. , & Zhuang, Z. (2012). Externalities of mandatory IFRS adoption: Evidence from cross-border spillover effects of financial information on investment efficiency. The Accounting Review, 88 (3) , 881-914.
Chen, C. J. , Ding, Y. , & Xu, B. (2014). Convergence of accounting standards and foreign direct investment. The International Journal of Accounting, 49 (1) , 53-86.
Cho, Y. J. (2015). Segment disclosure transparency and internal capital market efficiency: Evidence from SFAS No. 131. Journal of Accounting Research, 53 (4) , 669-723.
Christensen, H. B. , Lee, E. , & Walker, M. (2009). Do IFRS reconciliations convey information? The effect of debt contracting. Journal of Accounting Research, 47 (5) , 1167-1199
Cuijpers, R. , & Buijink, W. (2005). Voluntary adoption of non-local GAAP in the European Union: A study of determinants and consequences. European accounting review, 14 (3) , 487-524.
Daoyang, G. (2013). On the Global Reforms of the Accounting System. Social Sciences in China, 6, 005.
Daske, H. , Hail, L. , Leuz, C. , & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of accounting research, 46 (5) , 1085-1142
Daske, H. , Hail, L. , Leuz, C. , & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of accounting research, 46 (5) , 1085-1142.
De Franco, G. , Kothari, S. P. , & Verdi, R. S. (2011). The benefits of financial statement comparability. Journal of Accounting Research, 49 (4) , 895-931.
De George, E. T. , Li, X. , & Shivakumar, L. (2016). A review of the IFRS adoption literature. Review of Accounting Studies, 21 (3) , 898-1004.
Evans, M. E. , Houston, R. W. , Peters, M. F. , & Pratt, J. H. (2014). Reporting regulatory environments and earnings management: US and non-US firms using US GAAP or IFRS. The Accounting Review, 90 (5) , 1969-1994.
Fan, J. P. , & Wong, T. J. (2002). Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of accounting and economics, 33 (3) , 401-425.
Fang, V. W. , Maffett, M. , & Zhang, B. (2015). Foreign institutional ownership and the global convergence of financial reporting practices. Journal of Accounting Research, 53 (3) , 593-631.
Florou, A. , & Kosi, U. (2015). Does mandatory IFRS adoption facilitate debt financing?. Review of Accounting Studies, 20 (4) , 1407-1456.
Florou, A. , & Pope, P. F. (2012). Mandatory IFRS adoption and institutional investment decisions. The Accounting Review, 87 (6) , 1993-2025.
GAO, F. , & FU, R. H. (2012). Accounting Standards Reform, Stock Liquidity and Cost of Equity Capital: Evidence from Chinese A-Share Listed Companies [J]. Chinese Journal of Management Science, 4, 005.
Hail, L. , Leuz, C. , & Wysocki, P. (2010). Global accounting convergence and the potential adoption of IFRS by the US (Part II): Political factors and future scenarios for US accounting standards. Accounting Horizons, 24 (4) , 567-588.
He, X. , Xiao, T. , Tian, Y. , & Chen, X. (2012). The Effects of the Adoption of the New China Accounting Standards on Firms. Information Environment’, China Accounting and Finance Review, 14 (1) , 118-165.
Hong, H. A. (2013). Does mandatory adoption of international financial reporting standards decrease the voting premium for dual-class shares?. The Accounting Review, 88 (4) , 1289-1325.
Horton, J. , & Serafeim, G. (2010). Market reaction to and valuation of IFRS reconciliation adjustments: first evidence from the UK. Review of accounting studies, 15 (4) , 725-751.
Horton, J. , Serafeim, G. , & Serafeim, I. (2013). Does mandatory IFRS adoption improve the information environment?. Contemporary accounting research, 30 (1) , 388-423.
Hsu, A. W. H. , & Pourjalali, H. (2015). The impact of IAS No. 27 on the market's ability to anticipate future earnings. Contemporary Accounting Research, 32 (2) , 789-813.
Jamal, K. , Bloomfield, R. , Christensen, T. E. , Colson, R. H. , Moehrle, S. , Ohlson, J. ,... & Watts, R. L. (2010). A research-based perspective on the SEC’s proposed rule—Roadmap for the potential use of financial statements prepared in accordance with International Financial Reporting Standards (IFRS) by US issuers. Accounting Horizons, 24 (1) , 139-147.
Joos, P. P. , & Leung, E. (2012). Investor perceptions of potential IFRS adoption in the United States. The Accounting Review, 88 (2) , 577-609.
Karamanou, I. , & Nishiotis, G. P. (2009). Disclosure and the cost of capital: Evidence from the market's reaction to firm voluntary adoption of IAS. Journal of Business Finance & Accounting, 36 (7‐8) , 793-821.
Ke, B. , Li, Y. , & Yuan, H. (2012). The Effect of Mandatory IFRS Adoption on The Stewardship Usefulness of Financial Reporting. In Working paper, Nanyang Technological University, Shanghai University and Fudan University.
Keyhan Maham؛ Farzaneh Heidarpour؛ Alireza AghaiiGhohi, Advantages and Disadvantages of Usage the International Financial Reporting Standards as Iranian Accounting Standard, Journal of empirical research in accounting, Article 1, Volume 1, Issue 3, Spring 2012, Page 85-103 (In Persian).
Kim, J. B. , Tsui, J. S. , & Cheong, H. Y. (2011). The voluntary adoption of International Financial Reporting Standards and loan contracting around the world. Review of Accounting Studies, 16 (4) , 779-811.
Lambert, R. , Leuz, C. , & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of accounting research, 45 (2) , 385-420
Lambert, R. A. , Leuz, C. , & Verrecchia, R. E. (2011). Information asymmetry, information precision, and the cost of capital. Review of Finance, 16 (1) , 1-29.
Landsman, W. R. , Maydew, E. L. , & Thornock, J. R. (2012). The information content of annual earnings announcements and mandatory adoption of IFRS. Journal of Accounting and Economics, 53 (1-2) , 34-54.
Lee, G. , & Fargher, N. L. (2010). Did the adoption of IFRS encourage cross-border investment?.
Leuz, C. , & Schrand, C. (2009). Disclosure and the cost of capital: Evidence from firms' responses to the Enron shock (No. w14897). National Bureau of Economic Research.
Leuz, C. , & Verrecchia, R. E. (2000). The economic consequences of increased disclosure. Journal of accounting research, 91-124.
Li, S. (2010). Does mandatory adoption of International Financial Reporting Standards in the European Union reduce the cost of equity capital?. The accounting review, 85 (2) , 607-636.
LIU, B. , & XU, X. Z. (2010). Research on the Effect of International Convergence of New Accounting Standards——Based on the Perspective of Earnings Conservatism [J]. Collected Essays on Finance and Economics, 2, 014.
Márquez-Ramos, L. (2011). European accounting harmonization: Consequences of IFRS adoption on trade in goods and foreign direct investments. Emerging markets finance and trade, 47 (sup4) , 42-57.
Meder, A. A. (2015). Interaction between Accounting Standards and Monetary Policy: The Effect of SFAS 115. The Accounting Review, 90 (5) , 2031-2056.
Meeks, G. , & Swann, G. P. (2009). Accounting standards and the economics of standards. Accounting and Business Research, 39 (3) , 191-210.
Mohammad Geravand, International Convergence and Implementation of International Financial Reporting Standard, Accounting and Auditing Studies, Article 6, Volume 14, Issue 2, Spring 2014, Page 74-83 (In Persian).
Ozkan, N. , Singer, Z. , & You, H. (2012). Mandatory IFRS adoption and the contractual usefulness of accounting information in executive compensation. Journal of Accounting Research, 50 (4) , 1077-1107.
Paul, J. M. (1992). On the efficiency of stock-based compensation. The Review of Financial Studies, 5 (3) , 471-502.
Rahmani Ali, Sharareh Alipour, Barriers to adoption of international accounting standards in Iran, Empirical Studies in Financial Accounting quartery, Article 4, Volume 7, Issue 27, Autumn 2009, Page 83-107 (In Persian).
Rezvan Hejazi; Gholamreza Soleimany; Maryam Omidi Nobijar, The Impact of Adopting IASs on Iran Environment from Economic Perspective, Journal of Accounting Advances (J. A. A) , Article 4, Volume 5, Issue 1, Winter and Spring 2013, Page 87-111 (In Persian).
Shima, K. M. , & Gordon, E. A. (2011). IFRS and the regulatory environment: The case of US investor allocation choice. Journal of Accounting and Public Policy, 30 (5) , 481-500.
Stulz, R. M. (1981). On the effects of barriers to international investment. The Journal of Finance, 36 (4) , 923-934.
Tan, H. , Wang, S. , & Welker, M. (2011). Analyst following and forecast accuracy after mandated IFRS adoptions. Journal of Accounting Research, 49 (5) , 1307-1357.
TIAN, X. C. X. H. Y. (2011). New Accounting Standards Research: Analysis Framework and Literature Review. China Accounting Review, 2, 004.
Verrecchia, R. E. (1983). Discretionary disclosure. Journal of accounting and economics, 5, 179-194.
Wang, S. , & Welker, M. (2011). Timing equity issuance in response to information asymmetry arising from IFRS adoption in Australia and Europe. Journal of Accounting Research, 49 (1) , 257-307.
WANG, X. Y. , & YE, Z. H. (2011). Does Implementation of New Accounting Standards Reduce the Cost of Equity Capital——Evidence from Chinese Capital Market [J]. China Industrial Economics, 3, 119-128.
Wu, J. S. , & Zhang, I. X. (2009). The voluntary adoption of internationally recognized accounting standards and firm internal performance evaluation. The Accounting Review, 84 (4) , 1281-1309.
Xinshu, M. , & Deming, D. (2009). A Study on Earnings Conservatism and Earnings Management based on the Change of China Accounting System. Accounting Research, 12, 004.
Yuan, H. , Li, Y. , Lou, F. , & Zhang, Y. (2013). New Chinese Accounting Standards and the Usefulness of Accounting Information in Debt Contracts. China Accounting and Finance Review, 1 (15) , 1-60.
Zeff, S. A. (2010). The rise of “economic consequences”. In Insights from Accounting History (pp. 45-59). Routledge.
Zheng, S. , & Hao, L. (2013). The Effect of IFRS Adoption: Global Findings. Accounting Research, 1, 004.

Files

History

  • Receive Date: 13 March 2018
  • Revise Date: 23 October 2018
  • Accept Date: 20 June 2018

Share

How to cite

Statistics