Disclosure Incentives, Mandatory Standards and Firm Communication in the IFRS Adoption Setting

46 Pages Posted: 25 Jun 2011 Last revised: 15 Mar 2012

See all articles by Marvin Wee

Marvin Wee

Australian National University (ANU); Financial Research Network (FIRN)

Ann Tarca

University of Western Australia

Millicent Chang

The University of Western Australia; University of Wollongong

Multiple version iconThere are 2 versions of this paper

Date Written: March 14, 2012

Abstract

We investigate the content, timing and relevance of firms’ narrative disclosure about effects of IFRS adoption in annual statutory financial statements and firm announcements to the stock exchange for 150 large listed Australian firms in the three year period surrounding adoption (which occurred from 1 January 2005). We find that firms with a greater adverse change in earnings (but not equity) on transition provide more disclosure. This relationship is more likely in the transition year for firm announcements and in the adoption year for the statutory accounts, suggesting firms use their public announcements to make complementary and earlier disclosure. We also find the discussion of IFRS impact in both media are value relevant for firms with relatively higher level of disclosure.

Keywords: INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), AASB 1047, AASB 1, TRANSITION RECONCILIATION, CONTINUOUS DISCLOSURE REGIME, VALUE RELEVANCE

JEL Classification: M41, M40

Suggested Citation

Wee, Marvin and Tarca, Ann and Chang, Millicent, Disclosure Incentives, Mandatory Standards and Firm Communication in the IFRS Adoption Setting (March 14, 2012). Available at SSRN: https://ssrn.com/abstract=1870644 or http://dx.doi.org/10.2139/ssrn.1870644

Marvin Wee (Contact Author)

Australian National University (ANU) ( email )

The Australian National University
College of Business and Economics
Canberra, 2601
Australia
+61 2 61250416 (Phone)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Ann Tarca

University of Western Australia ( email )

Business School
35 Stirling Highway
Crawley WA 6009
Australia
+61 8 6488 3868 (Phone)
+61 8 6488 1047 (Fax)

Millicent Chang

The University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
AUSTRALIA

University of Wollongong ( email )

Northfields Avenue
Wollongong, New South Wales 2522
Australia

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