International financial reporting standards and financial information quality: principles versus rules-based standards

The objective of the present study is to examine whether the adoption of International Financial Reporting Standards (IFRS) increases financial information quality. The IFRS brings about substantial changes in accounting standards. One of the prominent features of the system is that it results in th...

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Main Authors:	Seyed Sajad Ebrahimi Rad, Zaini Embong
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6988/ http://journalarticle.ukm.my/6988/ http://journalarticle.ukm.my/6988/1/4988-13955-1-PB.pdf

id	ukm-6988
recordtype	eprints
spelling	ukm-69882016-12-14T06:42:47Z http://journalarticle.ukm.my/6988/ International financial reporting standards and financial information quality: principles versus rules-based standards Seyed Sajad Ebrahimi Rad, Zaini Embong, The objective of the present study is to examine whether the adoption of International Financial Reporting Standards (IFRS) increases financial information quality. The IFRS brings about substantial changes in accounting standards. One of the prominent features of the system is that it results in the production of financial information of higher quality. Most extant studies in this area are performed at firm-level. The present study, on the other hand, examines the impact of IFRS adoption at the country-level. Environmental determinism theory states that accounting is a function of environmental variables, such as ownership structure, information environment and capital market condition. Therefore, the impact of IFRS adoption could be different across different countries. The present study addresses the existing lack of research that compares the outcomes of IFRS adoption between countries. Besides comparing the quality of financial information before and after the adoption of IFRS, the present study also compares the effects of IFRS adoption between countries with different accounting bases prior to the adoption. The results show that financial information quality, measured by five indicators, improves after IFRS adoption; and that the impact is more prevalent in a rules-based country compared to a principles-based country. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6988/1/4988-13955-1-PB.pdf Seyed Sajad Ebrahimi Rad, and Zaini Embong, (2013) International financial reporting standards and financial information quality: principles versus rules-based standards. Jurnal Pengurusan, 39 . pp. 93-109. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The objective of the present study is to examine whether the adoption of International Financial Reporting Standards (IFRS) increases financial information quality. The IFRS brings about substantial changes in accounting standards. One of the prominent features of the system is that it results in the production of financial information of higher quality. Most extant studies in this area are performed at firm-level. The present study, on the other hand, examines the impact of IFRS adoption at the country-level. Environmental determinism theory states that accounting is a function of environmental variables, such as ownership structure, information environment and capital market condition. Therefore, the impact of IFRS adoption could be different across different countries. The present study addresses the existing lack of research that compares the outcomes of IFRS adoption between countries. Besides comparing the quality of financial information before and after the adoption of IFRS, the present study also compares the effects of IFRS adoption between countries with different accounting bases prior to the adoption. The results show that financial information quality, measured by five indicators, improves after IFRS adoption; and that the impact is more prevalent in a rules-based country compared to a principles-based country.
format	Article
author	Seyed Sajad Ebrahimi Rad, Zaini Embong,
spellingShingle	Seyed Sajad Ebrahimi Rad, Zaini Embong, International financial reporting standards and financial information quality: principles versus rules-based standards
author_facet	Seyed Sajad Ebrahimi Rad, Zaini Embong,
author_sort	Seyed Sajad Ebrahimi Rad,
title	International financial reporting standards and financial information quality: principles versus rules-based standards
title_short	International financial reporting standards and financial information quality: principles versus rules-based standards
title_full	International financial reporting standards and financial information quality: principles versus rules-based standards
title_fullStr	International financial reporting standards and financial information quality: principles versus rules-based standards
title_full_unstemmed	International financial reporting standards and financial information quality: principles versus rules-based standards
title_sort	international financial reporting standards and financial information quality: principles versus rules-based standards
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6988/ http://journalarticle.ukm.my/6988/ http://journalarticle.ukm.my/6988/1/4988-13955-1-PB.pdf
first_indexed	2023-09-18T19:48:27Z
last_indexed	2023-09-18T19:48:27Z
_version_	1777406058015227904

International financial reporting standards and financial information quality: principles versus rules-based standards

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