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Auditors' Affirmations of Compliance with IFRS around the World: An Exploratory Study

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  • Christopher W. Nobes
  • Stephen A. Zeff

Abstract

It is widely believed that international financial reporting standards (IFRS) have been adopted in many countries, at least for the consolidated reporting of listed companies. However, in nearly all cases, what the rules require is some national or supranational version of IFRS. This might create problems for investor confidence and comparability. We examine what companies and auditors report concerning compliance with IFRS, focusing on the first full year of IFRS reporting by companies in the stock market indices of four major European countries and Australia. We find that, even when companies were complying with IFRS, they were generally not saying so, which seems to miss part of the point of the 35‐year project on international harmonization. In a small number of cases, auditors provided dual reports: on full IFRS in addition to the mandated reference to national GAAP where the latter corresponds with full IFRS. These cases were found only in Germany and the United Kingdom, and mainly related to companies that filed with the Securities and Exchange Commission as foreign private issuers. We propose explanations for the general lack of dual reports and for the exceptions. We call for widespread adoption of dual reporting where a plain report on IFRS is not yet possible.

Suggested Citation

  • Christopher W. Nobes & Stephen A. Zeff, 2008. "Auditors' Affirmations of Compliance with IFRS around the World: An Exploratory Study," Accounting Perspectives, John Wiley & Sons, vol. 7(4), pages 279-292, November.
    • Handle: RePEc:wly:accper:v:7:y:2008:i:4:p:279-292
    DOI: 10.1506/ap.7.4.1
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    References listed on IDEAS

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    1. Geoffrey Whittington, 2005. "The adoption of International Accounting Standards in the European Union," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 127-153.
    2. Camfferman, Kees & Zeff, Stephen A., 2007. "Financial Reporting and Global Capital Markets: A History of the International Accounting Standards Committee, 1973-2000," OUP Catalogue, Oxford University Press, number 9780199296293, Decembrie.
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    2. Barbara Masiello & Nicola Moscariello & Pietro Fera, 2018. "Political Marketing Strategies to Foster the Sustainability of Private Transnational Organisations: The Case of the IASB," Sustainability, MDPI, vol. 10(8), pages 1-16, July.
    3. Riaz, Zahid & Ray, Pradeep & Ray, Sangeeta, 2022. "The impact of digitalisation on corporate governance in Australia," Journal of Business Research, Elsevier, vol. 152(C), pages 410-424.
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    6. Tetiana Shepel, 2021. "Development of Accounting in Ukraine Based on the Implementation of IFRS: Problems and Prospects," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 36-43, March.

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