Pro forma disclosure practices of firms applying IFRS
International Journal of Accounting & Information Management
ISSN: 1834-7649
Article publication date: 5 October 2015
Abstract
Purpose
The purpose of this paper is empirically investigate the pro forma disclosure behavior of US-listed foreign firms applying International Financial Reporting Standards (IFRS).
Design/methodology/approach
The annual earnings press releases of US-listed foreign firms on the New York Stock Exchange are analyzed to compare the effect that reporting standard (specifically IFRS) has on pro forma disclosure frequency, disclosure characteristics and benchmarking.
Findings
US-listed foreign firms applying IFRS report pro forma disclosures more frequently than firms using the USA’s generally accepted accounting principles (GAAP), but less opportunistically.
Originality/value
This paper extends Epping and Wilder’s (2011) study and contributes to the pro forma disclosure literature by providing a cross-country analysis of non-GAAP disclosure based on reporting standard (IFRS or US GAAP). Understanding the non-GAAP disclosure of firms applying IFRS is useful to investors and regulators, as more countries adopt IFRS.
Keywords
Acknowledgements
The authors would like to gratefully acknowledge the participants at the 2013 American Accounting Association (AAA) Annual Meeting, the 2012 AAA International Section Midyear Meeting, as well as anonymous reviewers for their helpful comments.
Citation
Solsma, L. and Wilder, W.M. (2015), "Pro forma disclosure practices of firms applying IFRS", International Journal of Accounting & Information Management, Vol. 23 No. 4, pp. 383-403. https://doi.org/10.1108/IJAIM-12-2014-0083
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited