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An empirical insight on Spanish listed companies’ perceptions of International Financial Reporting Standards

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  • Navarro-García, Juan Carlos
  • Bastida, Francisco

Abstract

Since 2005, all publicly traded European Union companies must prepare their consolidated statements in accordance with the International Financial Reporting Standards (IFRS). This paper analyzes the consequences of IFRS adoption in a code-law country (Spain), whose context is very different from the Anglo-Saxon system. This study provides evidence on the way that environment can affect Spanish financial managers and chief accountants, when they have to prepare financial reports under high-quality standards such as IFRS. The study used a questionnaire-based survey, which was completed by 63 Spanish listed firms. The results show that IFRS are perceived as a high-quality regulation appropriate for decision-making. However, IFRS are also seen as (1) significantly different from Spanish standards, (2) troublesome, and (3) failing to meet a cost-benefit trade-off in some cases. IFRS are not considered by the survey respondents as more appropriate than Spanish standards. The results of the study indicate that statement preparers’ overall views of IFRS could lead to less IFRS compliance and, therefore, lower quality financial reports than could be reached under strict IFRS application.

Suggested Citation

  • Navarro-García, Juan Carlos & Bastida, Francisco, 2010. "An empirical insight on Spanish listed companies’ perceptions of International Financial Reporting Standards," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 19(2), pages 110-120.
    • Handle: RePEc:eee:jiaata:v:19:y:2010:i:2:p:110-120
    DOI: 10.1016/j.intaccaudtax.2010.07.003
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    Cited by:

    1. Jonas Oliveira & Graça Azevedo & Bertina Oliveira, 2018. "Impairment Losses: The Impact of First‐time Adoption of the Accounting Standardisation System in Portugal," Australian Accounting Review, CPA Australia, vol. 28(4), pages 556-576, December.
    2. García-Meca, Emma & Sánchez-Ballesta, Juan P., 2011. "Ownership structure and forecast accuracy in Spain," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(2), pages 73-82.
    3. Jonas da Silva Oliveira & Graca Maria do Carmo Azevedo & Marta Jose Ferreira Oliveira & Sandra Gabi Marques de Almeida, 2015. "The Accounting Standardization System in Portugal and Its First-Time Adoption Effects in the Olive and Cork Tree Cultures," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 132-150, June.
    4. In Tae Hwang & Kang Sung Hur & Sun Min Kang, 2018. "Does the IFRS Effect Continue? An International Comparison," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    5. Palea Vera, 2013. "Capital Market Effects of the IFRS Adoption for Separate Financial Statements: Evidence from the Italian Stock Market," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201309, University of Turin.
    6. Guerreiro, Marta Silva & Rodrigues, Lúcia Lima & Craig, Russell, 2012. "Factors influencing the preparedness of large unlisted companies to implement adapted International Financial Reporting Standards in Portugal," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 21(2), pages 169-184.
    7. Palea, Vera, 2013. "IAS/IFRS and Financial Reporting Quality: Lessons from the European Experience," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201330, University of Turin.
    8. Bozkurt, Orhan & İslamoğlu, Mehmet & Öz, Yaşar, 2013. "Perceptions of professionals interested in accounting and auditing about acceptance and adaptation of global financial reporting standards," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 18(34), pages 16-23.
    9. Uyar, Ali & Güngörmüş, Ali Haydar, 2013. "Perceptions and knowledge of accounting professionals on IFRS for SMEs: Evidence from Turkey," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 77-87.

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    More about this item

    Keywords

    IFRS; Listed companies; Financial reporting quality; Acceptance of IFRS;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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