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Interpreting the Impact of IFRS Adoption

Interpreting the Impact of IFRS Adoption The adoption of International Financial Reporting Standards (IFRS) has been described as one of the most influential events relating to financial reporting (Daske et al. ). Given the significance of IFRS, it is important to review the impact of its adoption (1) to ensure that expected outcomes have been achieved and (2) to provide evidence for the International Accounting Standards Board and other jurisdictions that are converging with or adopting IFRS. Several studies examine the impact of IFRS adoption either by examining the financial statement impact (e.g., Aisbitt ; Perramon and Amat ; Hung and Subramanyam ; Krzywda and Schroeder ; Stent et al. ) or measuring accrual quality (e.g., van Tendeloo and Vanstraelen ; Burgstahler et al. ; Zeghal et al. ; Horton et al. ).We examine the impact of IFRS adoption in New Zealand. Our study differs from prior research in two major respects. First, we provide evidence from a single accounting standard, namely IAS 12 Income Taxes. Second, we adopt a case study approach by examining the line‐by‐line details of temporary differences arising from the adoption of IAS 12.IAS 12 is relevant because deferred tax was expected to be significantly affected by the adoption of IFRS (van Zijl and Walker ; http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Australian Accounting Review Wiley

Interpreting the Impact of IFRS Adoption

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Publisher
Wiley
Copyright
Copyright © 2017 CPA Australia Ltd (CPA Australia)
ISSN
1035-6908
eISSN
1835-2561
DOI
10.1111/auar.12174
Publisher site
See Article on Publisher Site

Abstract

The adoption of International Financial Reporting Standards (IFRS) has been described as one of the most influential events relating to financial reporting (Daske et al. ). Given the significance of IFRS, it is important to review the impact of its adoption (1) to ensure that expected outcomes have been achieved and (2) to provide evidence for the International Accounting Standards Board and other jurisdictions that are converging with or adopting IFRS. Several studies examine the impact of IFRS adoption either by examining the financial statement impact (e.g., Aisbitt ; Perramon and Amat ; Hung and Subramanyam ; Krzywda and Schroeder ; Stent et al. ) or measuring accrual quality (e.g., van Tendeloo and Vanstraelen ; Burgstahler et al. ; Zeghal et al. ; Horton et al. ).We examine the impact of IFRS adoption in New Zealand. Our study differs from prior research in two major respects. First, we provide evidence from a single accounting standard, namely IAS 12 Income Taxes. Second, we adopt a case study approach by examining the line‐by‐line details of temporary differences arising from the adoption of IAS 12.IAS 12 is relevant because deferred tax was expected to be significantly affected by the adoption of IFRS (van Zijl and Walker ;

Journal

Australian Accounting Review – Wiley

Published: Jun 1, 2017

References

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