Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability

• 成果类型: Article
• 署名作者: Lin, Steve; Riccardi, William N.; Wang, Changjiang
• 署名单位: State University System of Florida; Florida International University; State University of New York (SUNY) System; University at Albany, SUNY; University System of Ohio; University of Cincinnati
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12475
• 发表日期: 2019
• 页码: 588-617
• 关键词: us gaap; QUALITY; earnings

摘要

One of the primary objectives of both adoption of IFRS and convergence between IFRS and U.S. GAAP is to increase financial statement comparability. Using a unique setting in Germany, we compare the effectiveness of these two approaches in achieving this desired outcome. Our empirical tests show that both adoption and convergence lead to an increase in comparability after the new enforcement regulation in 2005. However, difference-in-differences tests show that adoption does not lead to a significant incremental increase in comparability beyond convergence. The findings of this study should be of interest to regulators and standard setters as they assess alternative methods of aligning domestic standards with IFRS.