The Effect of IFRS Adoption on Accounting Quality
Date Issued
2015
Date
2015
Author(s)
Kao, Wan-Ching
Abstract
The purpose of this study is to investigate whether the accounting quality improves after adopting International Financial Reporting Standards（IFRSs）in Taiwan. We divide the sample into two periods: sample from 2010 to 2012 that haven’t adopted IFRSs yet and sample from 2013 to 2014 that have adopted IFRSs. We group our measures of accounting quality into three categories：earning smoothing, timely loss recognition and value relevance. We use these measures to determine the accounting quality. We find that IFRSs adoption performs more earning smoothing, more small positive net income, more timely loss recognition and more value relevance of accounting data than GAAP adoption. In sum, three indicators of weighing accounting quality most offer the evidence that the financial reporting system of adopting IFRSs provides information with higher quality.
Subjects
Accounting Quality
Value relevance of financial statements
Earning Quality
Financial reporting system
Type
thesis