Impact of the IFRS and US-GAAP on economic-financial indicators
Purpose – The paper seeks to analyze the impact of differences between the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles in the United States (US GAAP) in the economic-financial indicators of English companies. Design/methodology/approach – The research is characterized as descriptive-quantitative, using regression and correlation analysis. The study was developed on 37 English companies that negotiate American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE). Documental research consisted of accounting statements (AS) from 2005 sent to the London Stock Exchange (LSE) and to the NYSE. Findings – The research shows percentage differences in the economic-financial indicators of English companies, calculated based on AS sent to the LSE and the NYSE that suggest divergences between the IFRS and the US GAAP. However, analysis of regression and correlation indicate significant correlation between the differences of these indicators. Thus, it was concluded that the economic-financial indicators are not affected in a significant way by the divergences in the accounting standards considered. Research limitations/implications – As limitations, the economic-financial indicators chosen can be pointed out. Therefore, in the individual analysis of each indicator and of each company there are greater or lesser differences that are dependent on the existence of the elements that possess difference in the applicable norms and their sums. Originality/value – The focus of this study is the information asymmetry that results from the differences between accounting standards that are applied. It is intended to advance research with a study of the impact provoked in the economic-financial indicators from a sample of companies that release AS in IFRS and US GAAP.
Volume (Year): 23 (2008)
Issue (Month): 7 (July)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://emeraldgrouppublishing.com/products/journals/journals.htm?id=maj Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 1998.
"Corporate Ownership Around the World,"
Harvard Institute of Economic Research Working Papers
1840, Harvard - Institute of Economic Research.
When requesting a correction, please mention this item's handle: RePEc:eme:majpps:v:23:y:2008:i:7:p:632-649. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister)
If references are entirely missing, you can add them using this form.