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The impact of IFRS 10 on consolidated financial reporting

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  • Anna Bedford
  • Martin Bugeja
  • Nelson Ma

Abstract

This study examines the impact of IFRS 10 adoption on consolidated financial reports. Our evidence suggests that the new standard is associated with firms consolidating fewer subsidiaries and consolidating fewer subsidiaries with non‐majority ownership. The results also indicate that the effects of IFRS 10 adoption are associated with financial reporting incentives. Finally, our results suggest that post‐IFRS 10, the value relevance of equity increased and the value relevance of profit decreased for firms reporting fewer subsidiaries. The findings are of particular interest to accounting standard setters who are currently undertaking their post‐implementation review of the impact of IFRS 10 adoption.

Suggested Citation

  • Anna Bedford & Martin Bugeja & Nelson Ma, 2022. "The impact of IFRS 10 on consolidated financial reporting," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 101-141, March.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:1:p:101-141
    DOI: 10.1111/acfi.12782
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    References listed on IDEAS

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