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The authors aim to analyze whether the adoption of IFRS accounting standards in Chilean capital markets affects the earnings conservatism of the firms that adopt them.

Using a conditional earnings conservatism model, the authors compare the conservatism of the firms by periods of using or not using IFRS standards for a sample of 95 listed Chilean firms between 1999 and 2010.

The authors’ results show that conditional earnings conservatism is more pronounced under IFRS standards and suggest that the use of IFRS improves the relevance and reliability of the reported accounting information.

The authors provide new evidence from a Latin‐American emerging market and they shed some light on the potential effect of IFRS implementation for several Latin‐American countries that are in the on‐going process of convergence.

Este artículo analiza si la adopción de las normas internacionales de información financiera (NIIF o IFRS) en el mercado de capitales chileno afecta el conservadurismo de las utilidades de las empresas que las adoptan.

Utilizando un modelo de conservadurismo condicional de las utilidades, se compara el conservadurismo de las empresas pre y post adopción de las normas IFRS para una muestra de 95 empresas que cotizan en el mercado de capitales chileno para el período entre 1999 y 2010.

Los resultados obtenidos evidencian que el conservadurismo condicional en las utilidades es más pronunciado bajo la normativa IFRS y sugieren que el uso de IFRS mejora la relevancia y confiabilidad de la información contable reportada.

Se provee nueva evidencia para una economía emergente y algunas luces acerca del efecto potencial que el proceso de convergencia contable puede tener sobre la calidad de la información financiera para algunos países latinoamericanos.

The paper aims to trace the development of attitudes towards financial reporting solutions for entities not subject to the European Union (EU) Regulation. This Regulation mandated application of IFRS for the group accounts of listed companies for financial years beginning 1 January 2005. It seeks to evaluate the alternatives in the light of changing attitudes to IFRS, and the accounting model being adopted, particularly focusing on the problems facing smaller companies.

The paper employs qualitative analysis of data from two main sources: first, a series of interviews with financially literate individuals before IFRS was implemented in the UK; and second, from responses to ASB's consultations on the future of financial reporting for non‐listed entities.

The increasing perception is that IFRS is overly complex and is complicating the search for appropriate form of financial reporting for entities not covered by the EU Regulation. In particular, there is a difficulty in knowing the correct dividing point between large and small company accounting, and views on this have evolved over time. The needs of small and medium enterprises appear to have been ignored in the debates dominated by the requirements of global players.

The implications are that further, possibly more radical policy options need to be considered for smaller companies to ensure that the costs of financial reporting remain in proportion to the benefits.

The paper identifies the changing views in the UK of the suitability of IFRS for non‐listed entities.

The purpose of this study is to review a synthesis of International Financial Reporting Standards (IFRS) implementation in developing countries in an attempt to provide directions for future research. The in-depth analysis was performed with the use of the data analysis tool available in the Scopus databases. The study initially reviewed 145 papers and in particular 35 papers were analysed. Fifteen articles (43%) were published in seven journals including International Journal of Accounting, Critical Perspectives on Accounting, Advances in Accounting, International Journal of Accounting and Information Management, Asian Review of Accounting, Journal of Applied Accounting Research, and Asian Journal of Business and Accounting. Specifically, 89% citations were from 14 articles, but 9 (25%) articles were without any citations. Most of the studies focus on qualitative followed by quantitative, and very few studies were based on mixed methods. Researchers should focus on few areas for future research on IFRS implementation in developing countries including theory implications, policy prescriptions, and case of particular standard.

While the world-wide adoption of international financial reporting standards (IFRS) aims to eliminate differences in national accounting standards between countries, the socio-political institutions surrounding financial reporting practices remain localised. This paper aims to penetrate and reveal the manner in which local national context, stakeholder intentions and financial reporting practices can moderate the compliance with IFRS in a developing country.

An interview-based qualitative research framework was used to analyse the experience and attitudes of accountants, auditors and financial reporting regulators during a passage of accounting reform initiatives.

This paper provides a critical analysis of the financial reporting practices of a developing country that has ostensibly implemented accounting reforms prescribed by the World Bank. It has revealed the key firm- and field-level logics that are experienced and managed by regulators and corporate managers in their approaches to financial reporting and accountability. The World Bank-led accounting reform can be constrained by a complex mix of institutional logics originating from market and corporate structures, networks of institutionalised family and political relationships, professional and regulatory structure and resourcing limitations and cultural business conventions. This paper provides evidence of firm- and field-level logics that contest and influence the emergence of a financial reporting oversight body and lead to highly variable compliance with international accounting standards.

This paper aims to extend our knowledge beyond broad national-level elements of institutional orders. It presents a more penetrating examination of the existence and contestation of logics originating from various local and global actors and interests. It presents a theoretical mapping of institutional logics, which operate in international and local settings and also encompass firm- and field-level imperatives. Any effort to understand and improve accounting practices of a developing country need to consider the power, contestation and influence of multiple logics operating in its institutional environment.

This study aims to investigate in‐depth, and explain the issues related to, the implementation of IAS/IFRS in an emergent country that recently adhered to the European Union, i.e. Romania.

An institutional and structuration theory perspective is used to discuss two stages of IAS/IFRS implementation in Romania. Both primary (11 in‐depth semi‐structured interviews conducted with key actors involved in financial reporting) and secondary data (accounting regulations after the fall of communism, with respect to the implementation of IAS/IFRS) were collected for the purpose of the paper.

It was found that the two stages of IAS/IFRS implementation had different outcomes, with a more profound and qualitative impact of the second phase. The first step was a result of coercive external forces, that is, the influence of the World Bank. Given the lack of other factors to favor the change process, it is argued that the actual implementation of IAS in that period was very limited. Even though the second step meant a reduction in scope to only listed companies in consolidated accounts and financial institutions, it is argued that it was accompanied by a change process more significant than in the previous period.

The paper investigates the inter‐play between institutions, routines and politics in the Romanian context and highlights the complexity of accounting change in an emerging country.

This paper investigates whether the greater flexibility of International Financial Reporting Standards (IFRS) in contrast to accounting models that were used before those standards became mandatory meant a significant change in the magnitude of accruals recognized in the accounting income.

18,126 observations are analyzed on 1,881 non-financial companies in 19 European countries in 2000–2012. A difference-in-differences regression method is used. The treatment sample includes companies that were required to adopt IFRS as from the 2005 fiscal year, while the control sample comprises companies that voluntarily adopted IFRS prior to 2005.

Compared to prior accounting standards, the mandatory adoption of IFRS increased the absolute value of accruals. This result is seen only in those companies where the magnitude of accruals is negative. The observed effect is independent of the degree of similarity between IFRS and prior standards.

This paper complements the literature analyzing the effect of IFRS on the financial statements and on the financial-economic indicators of companies. It analyzes the component of accounting income that is most sensitive to the use of professional judgment: accruals. Focusing on observed accruals helps avoid an error in measurement that can be made when working with the discretionary component of accruals. Additionally, a longer time horizon than in previous studies is considered.

Este trabajo investiga si la mayor flexibilidad de las Normas Internacionales de Información Financiera (NIIF) respecto a los modelos contables que se empleaban antes de que dichas normas fueran obligatorias supuso un cambio significativo de la magnitud de los ajustes por devengo reconocidos en el resultado contable.

Se analizan 18.126 observaciones de 1.881 empresas no financieras de 19 países europeos en 2000–2012. Se utiliza la metodología de regresión del tipo diferencia en diferencias. La muestra de tratamiento incluye empresas que adoptaron obligatoriamente las NIIF, lo que tuvo lugar en el ejercicio contable 2005, y la muestra de control está compuesta por empresas que las adoptaron voluntariamente antes de 2005.

Con respecto a las normas contables previas, la adopción obligatoria de las NIIF incrementó el valor absoluto de los ajustes por devengo. Este resultado se observa solamente en el grupo de empresas donde la magnitud de los devengos es negativa. El efecto observado es independiente del grado de similitud entre las NIIF y las normas previas.

Este trabajo complementa la literatura que analiza el efecto de las NIIF sobre los estados financieros y los indicadores económico-financieros de las empresas, analizando el componente del resultado contable más sensible al uso del juicio profesional: los devengos. El hecho de centrarse en los devengos observados permite evitar el error de medición en el que se incurre cuando se trabaja con el componente discrecional de los mismos. Adicionalmente, se analiza un horizonte temporal más amplio que en trabajos previos.

The purpose of this paper is to examine how and the extent to which barriers to change inhibit new ideas about note disclosures to manifest themselves in annual reports.

The study employs regulation theory and draws on case studies in Denmark and the UK to understand compliance motivations and, on that basis, to identify the barriers to and enablers of changes to note disclosures in annual reports.

It is demonstrated how certain characteristics of the annual report preparation process can dampen the potential for change. It is also shown how preparer perceptions of oversight agents (auditors, enforcers, audit committees) have effects on disclosure behaviour. These characteristics appear to cause defensiveness among the actors involved in the process, inhibiting changes. In contrast, enablers are related to trust in regulatory enforcement, facilitation from enforcers, user orientation and shared understanding among functional groups involved in the preparation process.

The preparation of notes is susceptible to the influence of a range of factors, such as company politics, perceptions of enforcement styles and actors’ concerns about being blamed for inappropriate responses to regulation. These findings could be considered by regulators, auditors and preparers in enhancing understanding of their respective roles in the annual report preparation process.

This study illuminates the conditions that facilitate change when new ideas are introduced to a highly normative and detailed field. The study contributes to previous research by providing a fieldwork-based analysis of the practices, judgements, discussions and actors involved in the preparation of note disclosures.

This paper aims to examine the moderating effect of conflict of interest regulation (CIR) on the relationship between mandatory of International Financial Reporting Standards (IFRS) adoption and foreign direct investment (FDI) in the Middle East and North Africa (MENA) region.

The study was conducted based on panel data from 15 MENA countries during the period 2008–2020. Collected data were analyzed by using the generalized method of moments estimation technique.

This study results show that both mandatory of IFRS adoption and CIR do not have a significant effect on FDI inflows in MENA region; however, their interaction has a positive and significant effect on FDI inflows. This implies that more development of CIR enhances the impact that mandatory of IFRS adoption has on FDI inflows.

This study results are very useful to policymakers and regulators in the MENA region. The mandatory of IFRS adoption on its own does not improve significantly FDI inflows. The MENA countries should look inwards into more developed CIR that would support IFRS adoption to attract more FDI.

To the best of the author’s knowledge, this is the first research study to investigate the moderating effect of CIR on the relationship between mandatory of IFRS adoption and FDI inflows. In addition, the empirical researches on the effect of mandatory of IFRS adoption as issued by the International Accounting Standards Board (IASB) on FDI inflows for MENA countries are almost absent.

The purpose of this paper is to investigate stakeholders’ salience on accounting and in particular to assess the magnitude of state influence in Romania, an emerging context.

This research integrates stakeholders’ theory and an empirical approach based on a survey administrated to professional accountants as preparers of accounts on the financial reporting market.

The findings confirm the hypothesis of Mitchell et al. (1997) that the importance of stakeholders is high if attributes like power, legitimacy and claims urgency are perceived as current. In the Romanian emergent context, for the period 1991-2010, a relatively strong tax-accounting linkage is still identified according to Lamb et al.’s (1998) hierarchy. However, as compared to the absolute dominance observed for the early post-communist stage, the state holds the second position in terms of values of stakeholder attributes, after the shareholders.

An increased influence of the accounting bodies, academics and business representatives, who should communicate effectively and constructively with the public structures with respect to enforcement of accounting regulations and the type of organizations involved. The higher focus on IFRS in the EU and in Romania and the evolution of Romanian economic and legal structures lead to the reassessment of the usefulness of IFRS, at least in the case of certain types of organizations. This is also due to the fact that the new IASB framework takes into consideration other types of stakeholders than (actual) shareholders along with the providers of finance from the entity and stewardship perspective.

This paper argues that one of the factors of state influence in accounting is the tax-accounting linkage who is still occurs in this context in present. Also, refers to another factor that caused the watering down of the state’ position, namely, the growing impact of IFRS on Romanian financial reporting.

The purpose of this paper is to examine how the mandatory shift from Norwegian Generally Accepted Accounting Principles (NGAAP) to International Financial Reporting Standards (IFRS) in Norway affected the valuation weights of earnings and book values, with the aim of gaining insights that are relevant for standard setters, investors and other users of accounting information.

The authors extend the IFRS literature on structural shifts between the pre- and post-adoption periods by comprehensively controlling for factors that vary between the IFRS sample and the domestic Generally Accepted Accounting Principles (GAAP) sample. Moreover, the tests are designed to reveal the underlying accounting causes of the observed differences in value relevance.

IFRS are balance sheet-oriented and emphasize measurement at fair value. By contrast, NGAAP are earnings-oriented and focus on historical cost. IFRS also differ from NGAAP by recognizing more intangible assets. Overall, IFRS are thus less conservative than NGAAP. It was found that expanded fair value accounting increases the value relevance of book values and decreases the value relevance of earnings. However, the improved matching of intangible asset expenditures with the future economic benefits of such intangible assets increases the persistence and value relevance of earnings relative to book values.

This paper introduces a test methodology that is designed to identify the effects that specific accounting differences between the IFRS sample and the domestic GAAP sample have on value relevance. Consequently, this paper not only identifies the overall effects on value relevance but also contributes to the literature by identifying specific accounting differences between IFRS and GAAP that cause these overall effects, and thus obtain insights that are valuable for standard setters and other users of accounting information.