Does mandatory adoption of IFRS guarantee compliance?

Mısırlıoğlu, İsmail U., Tucker, J. and Yükseltürk, O. (2013) Does mandatory adoption of IFRS guarantee compliance? The International Journal of Accounting, 48 (3). pp. 327-363. ISSN 0020-7063

This is the latest version of this item.

[img] Microsoft Word 2007 (Abstract) - Accepted Version
13kB
[img]
Preview
PDF - Submitted Version
260kB

Publisher's URL: http://dx.doi.org/10.1016/j.intacc.2013.07.002

Abstract

In this study we examine whether the mandatory adoption of IFRS by Turkish listed companies in 2005 was successful in practice and what role firm and country level factors played in the adoption. The firm-specific factors that affect the degree of change in both measurement and disclosures are determined by conducting a multivariate analysis. Further, we conduct interviews with external auditors to throw some light on the challenges associated with, and outcomes of, adoption. We find that whilst the standards clearly impact on certain accounts, adoption is not uniform across them and that overall measurement change is positively associated with auditor prominence and gearing, and negatively associated with the degree of free float. With regard to disclosures, we find that although there are some improvements, the vast majority of the disclosure items required by IFRS were not disclosed. Auditor type, size and the degree of foreign ownership of shares exert a positive impact on the overall improvement in disclosures. Our interview analysis reveals that the dominance of tax laws, the lack of enforcement, corporate governance issues, and inadequate management information systems were all significant constraints to the successful adoption of IFRS.

Item Type:Article
Uncontrolled Keywords:international financial reporting standards, measurement, disclosure, mandatory IFRS adoption, Turkey
Faculty/Department:Faculty of Business and Law > Department of Accounting, Economics and Finance
ID Code:13495
Deposited By: A. Lawson
Deposited On:01 Nov 2010 15:27
Last Modified:29 Mar 2014 06:42

Available Versions of this Item

Request a change to this item

Total Document Downloads in Past 12 Months

Document Downloads

Total Document Downloads

More statistics for this item...
Copyright 2013 © UWE better together