Relevance of differences between net income based on IFRS and domestic standards for european firms

• Autores: Mary E. Barth, Wayne R. Landsman, Danqing Young, Zili Zhuang
• Localización: Journal of Business Finance & Accounting, ISSN-e 1468-5957, Vol. 41, Nº. 3 (Issue 3-4), 2014, págs. 297-327
• Idioma: inglés
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• Dialnet Métricas: 2 Citas
• Resumen

  • Net income adjustments resulting from mandatory 2005 IFRS adoption in Europe are value relevant for financial and non-financial firms. Differences in relevance of the aggregate adjustment and adjustments related to several IFRS standards, for financial and non-financial firms and across country groups, suggest differences in domestic standards and institutions affect investors� assessment of the relevance of IFRS accounting amounts. Despite these differences, except for French/German non-financial firms, investors view net income measured using IAS 39 Financial Instruments: Recognition and Measurement as more relevant than that measured using domestic standards, which is notable because IAS 39 was highly controversial in Europe.