Adoption of International Financial Reporting Standards (IFRS) and Measurement of Reporting Quality: A Review of Methodologies

Aminu Abdullahi(1*), Musa Yelwa Abubakar(2),


(1) Department of Accounting Usmanu Danfodiyo University
(2) Department of Accounting Usmanu Danfodiyo University
(*) Corresponding Author

Abstract

This paper conceptually review the various models employed by previous studies in the measurement of reporting quality following the adoption of International Financial Reporting Standards (IFRS) around the world. In the review, attention is paid to the nature, appropriateness and limitations of each of the models identified. It was found that, the methodologies used in studying the relationship and impact of IFRS on reporting quality are classified into qualitative, quantitative and firm-specific attributes models on one hand, and direct and indirect models on the other hand. Finally, the study calls on researchers to be wary, by selecting appropriate method that commensurates with the objectives of their studies, and their ability to adequately mitigate the limitation of the model highlighted in the review.

Keywords

IFRS adoption; reporting quality measurement; review of methodologies

Full Text:

PDF

References

Agyei-Mensah, K. Ben. 2013. Adoption of International Financial Reporting Standards in Ghana and quality of financial reporting disclosures. International Journal of Accounting and Financial Reporting. Macrothink Institute. ISSN 2162-3082.3 (2).www.macrothink.org/jafr.pp269-286. DOI: 10.5296/ijafr.v3i2.4489

Ahmed, A. S., Nell, Michael, and Wang, Dechun. 2013. Does manadatory adoption of International Financial Reporting Standards improve accounting quality: Preliminary evidence. Social Science Reseach Network , pp1-46. ssrn.com/abstract=1052909. Retrieved June 1, 2015.

Aurelia, T.S., (2017). Reflections on the possibility of using statistical analysis science and innovation in the republic of moldova. International Business and Accounting Research Journal, 1(1), pp.9-17.

Barth, M. E., Landsman, R.Wayne, and Lang, H. Mark. 2007. International accounting quality. Stanford Graduate School of Business Research Paper Series (No.1976) , pp1-52. Available @ http:// ssrn.com/abstract-1029382.Retrieved August 13, 2014.

Chalaki, P., Didar, Hamzeh, and Riahinezhad, Mohecleseh. 2012. Corporate governance attributes and financial reporting quality: Evidance from Iran. International Journal of Business and Social Science , 223-229.Retrieved November 1, 2013.

Dechow, P., and Dichev, Ilia. 2002. The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77(1), 35–59. Retrieved on 21 January 2015.

Financial Accounting Standards Board (FASB) & International Accounting Standards Board (IASB) .2008. Conceptual Framwork for Financial Reporting. www. ifrs.org. Retrieved on 23 march 2015.

International Financial Reporting Standards (IFRS). 2014. International Financial Reporting Stanards Resources. wwwifrs.com. Retrieved on 23 March, 2015.

Kallob, M. A. Deema. 2013. Using the information qualitative characteristics in measuring quality of financial reporting of the Palestinian banking sector. A Masters Degree Thesis Submitted to High Studies Deanery Faculty of commerce, Accounting and Finance Islamic University of Gaza , pp1=86.

Kiow, T.S., Salleh, M.F.M. and Kassim, A.A.B.M., (2017). The determinants of individual taxpayers’ tax compliance behaviour in peninsular malaysia. International Business and Accounting Research Journal, 1(1).

Klai, N., and Omri, Abdelwahed. 2011. Corporate governance and financial reporting quality: The case of Tunisian firms. International Business Research. 4(1) , 158- 166.Retrieved March 25, 2014.

Natalia, P. and Aurelia, T.S., (2017). The Main Directions of The Scientific Reform in Republic of Moldova. International Business and Accounting Research Journal, 1(1), pp.44-54.

Outa, Erick. Rading. 2011. The Impact of International Financial Reporting Standards (IFRS) adoption on the accounting quality of listed companies in Kenya. International Journal of Accounting and Financial Reporting. Macrothink Institute.1 (1) , pp 212-241. ISSN 2162-3082. Available @ www.marothink.org/ijafr.Retrieved September 25, 2015.

Raonic, I. and Isidro, Helena. 2012. Firm Incentives, Institutional Complexity and the Quality of "Harmonized" Accounting Numbers. The International Journal of Accounting, 47(4), pp. 407-436. doi:10.1016/j.intacc.2012.10.007. http://openaccess.city.ac.uk/13679/

Söylemez, A.O., (2017). Volatılıty Spıllovers from The Internatıonal Capıtal Inflows to Economıc Growth in Turkey. International Business and Accounting Research Journal, 1(1), pp.18-25.

Tasios, S., and Bekiaris, Michalis. 2012. Auditor's perception of financial reporting quality: the Case of Greece. International Journal of Accounting and Financial Reporting. Marothink Institute.2(1). ISSN 2162-3082., pp57-74. Avialabe @ www.marothink.org/ijafr.Retrieved March 26, 2015.

van Beest, F., Braam, Geert., and Boelens, Suzanne. 2009. Quality of financial reporting: Measuring qualitative characteristics. Nijmegen Center for Economics (NICE); Working (Paper 09-108). Institute for Management Research Radboud University Nijmegen, the Netherlands. , pp1-41. Avialable @ http://www.ru.n1/nice.Retrieved March 21, 2013.

Yoon, Sora. 2007. Accounting quality and international accounting convergence. A Phd Dissertation Submitted to the Faculty of Graduate College of Oklahoma State University. Available @ http://gradworks.umi.com/32/91/3291440.html, pp1-50.Retrieved September 25, 2015.

Yüksel, S., (2017). The impacts of research and development expenses on export and economic growth. International Business and Accounting Research Journal, 1(1), pp.1-8.

Yurisandi, Try, and Puspitasari, Evita. (2015). Financial reporting quality –before and after IFRS using NICE qualitative characteristics measurement. 2nd Global Conference on Business and Social Sciences. GCBSS 17 – 18 September 2015 Bali Indonesia. Available online at www.sciencedirect.com. Procedia - Social and Behavioral Sciences 644 – 652.Retrieved December 21, 2015.

Article Metrics

Abstract : 653 times
PDF : 516 times
DOI: http://dx.doi.org/10.15294/ibarj.v1i2.10

Refbacks

  • There are currently no refbacks.