IDEAS home Printed from https://ideas.repec.org/a/ids/ijaape/v7y2011i3p219-252.html
   My bibliography  Save this article

A comparison of properties of earnings, book value, and residual income for financial reporting under IAS and IFRS

Author

Listed:
  • Henghsiu Lin
  • Mari Paananen

Abstract

We examine and compare the valuation properties of earnings and book value of equity under international accounting standards (IAS) during 2000-2002 with those under international financial reporting standards (IFRS) during 2003-2004 (the voluntary period) and 2005-2006 (the mandatory period). Accordingly, we conduct our investigation using a sample of German and Swiss companies reporting under IAS during 2000-2002 and IFRS during 2003-2004 and 2005-2006 by assessing the relative performance of three accounting-based valuation models. We find that the RI model dominates in all three time periods under study for both countries. Our findings are supported by robustness tests. Our study suggests that the recent changes in international accounting standards do not change the valuation properties of Swiss and German IAS/IFRS accounting variables. However, we document a decrease in the explanatory power of the accounting-based valuation models from the IAS period to the IFRS periods.

Suggested Citation

  • Henghsiu Lin & Mari Paananen, 2011. "A comparison of properties of earnings, book value, and residual income for financial reporting under IAS and IFRS," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 7(3), pages 219-252.
    • Handle: RePEc:ids:ijaape:v:7:y:2011:i:3:p:219-252
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=40835
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijaape:v:7:y:2011:i:3:p:219-252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=41 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.