Do Accounting Standards Matter?

In their hold Do accounting standings matter? Jeanjean and Stolowy construe to discover the effect of the compulsory introduction of IFRS on prosecute quality and earnings management. They do this by looking at three countries where IFRS has been do mandatory; Australia, France and the UK. The subject shows the results of the effect on earnings management in all three countries before, during the passage and after the adoption of IFRS in the respective countries. They did this by pulsation financial reporting quality as a mitigate in earnings management. The statistical explore design, favoured in previous(prenominal) studies, was assessed as the frequency of small profits compared to small losses. thither is an on-going statement about the usefulness of accounting standards and the paper helps prune the pack for companies to be consistent internationally as it pass on benefit all stakeholders involved. Previous studies involved in this debate have been on firms that voluntarily adopted IFRS (Leuz and Verrecchia, 2000; Barth et al., 2008). However, Jeanjean and Stolowys research adds to this by merely considering companies where it is mandatory to implement IFRS.

The article addresses hear issues, including whether the accounts are more useful to investors after the instruction act of IFRS and if firms disclose figures that are more informative after the exercise of IFRS. The paper claims that the switch to IFRS was non a major sender of improvement in terms of earnings quality (p.481) as earnings management remained stable in the UK and in Australia, although it deviate magnitude in Fran ce. Another claim is that sharing rules is n! ot competent in itself to create a common worry words (p.493). A key citation from the article is that of the European meat 2002, this could be included to illustrate not only the need for IFRS but also why it is being made mandatory in the European Union. Without this citation the research would peradventure omit reason and context. It states...If you want to get a encompassing essay, dedicate it on our website: BestEssayCheap.com

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