Impact van IFRS 15

Impact of Mandatory IFRS Adoption on Conditional Conservatism in Europe

We study the effect of the mandatory adoption of IFRS in Europe in 2005 on conditional conservatism. To capture conditional conservatism, we use three measures: the Basu (1997) measure, the Khan and Watts (2009) measure, and a measure controlling for potential shifts in unconditional conservatism and cost of capital after the adoption of IFRS. From a sample of 7,251 firm-year observations drawn...

IFRS 15, revenue from contracts with customers: a major project is completed

Does Mandatory IFRS Adoption

We test whether mandatory IFRS adoption affects firm-level ‘crash risk,’ defined as the frequency of extreme negative stock returns. We separately analyze non-financial firms and financial firms because IFRS is likely to affect their crash risk differently. We find that crash risk decreases among non-financial firms after IFRS adoption, especially among firms in poor information environments an...

The Impact of Mandatory IFRS Adoption on Foreign Mutual Fund Ownership: The Role of Comparability

Proponents of International Financial Reporting Standards (IFRS) claim that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. Our study tests this assertion by examining the change in foreign mutual fund investment in IFRS users following the mandatory adoption of IFRS in the European Union (EU) in 2...

Mandatory IFRS Adoption and Financial Statement Comparability

This study examines whether mandatory adoption of International Financial Reporting Standards (IFRS) leads to capital market benefits through enhanced financial statement comparability. UK domestic standards are considered very similar to IFRS (Bae et al. 2008), suggesting any capital market benefits observed for UK-domiciled firms are more likely attributable to improvements in comparability (...