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Evidence of the Impact of Methods of Implementation of IFRS on the Relevance of Accounting Information

Author

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  • Youssef Alami
  • Mohamed Rachid Ouezzani

Abstract

We have introduced a new classification of methods of implementation of IFRS based on the three criteria: The conformity with the IFRS Issued by the IASB, the necessity of a regulatory passage and the policy of implementation. On the basis of this classification, we have established an empirical study to examine the effect of these methods of implementation of IFRS on the relevance of the accounting Information. As a sample, we have taken several companies listed on the stock market of 8 countries adopting the IFRS with different methods of implementation. The results found show that the method of implementation of IFRS impacts significantly the relevance of the accounting information. Additionally, the comparison of the relevance of the accounting information demonstrates a better quality in countries adopting methods which are conform to IFRS compared to those opting for methods less conform. Thus, these results complement the diverse studies on the quality of the accounting information and open up new lines of researches.

Suggested Citation

  • Youssef Alami & Mohamed Rachid Ouezzani, 2015. "Evidence of the Impact of Methods of Implementation of IFRS on the Relevance of Accounting Information," Business and Economic Research, Macrothink Institute, vol. 5(1), pages 227-242, June.
    • Handle: RePEc:mth:ber888:v:5:y:2015:i:1:p:227-242
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    References listed on IDEAS

    as
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    2. Christopher S. Armstrong & Mary E. Barth & Alan D. Jagolinzer & Edward J. Riedl, 2008. "Market Reaction to the Adoption of IFRS in Europe," Harvard Business School Working Papers 09-032, Harvard Business School.
    3. Stephen A. Zeff & Christopher W. Nobes, 2010. "Commentary: Has Australia (or Any Other Jurisdiction) ‘Adopted’ IFRS?," Australian Accounting Review, CPA Australia, vol. 20(2), pages 178-184, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Impact; Methods; Implementation; IFRS; Relevance;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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