Timing the Adoption of the New Canadian GAAP for Private Enterprises

32 Pages Posted: 25 Nov 2011

See all articles by Sylvain Durocher

Sylvain Durocher

University of Ottawa - Telfer School of Management

Anne Fortin

Université du Québec à Montréal

Date Written: October 15, 2011

Abstract

Prior research into the adoption timing decision of organisations in relation to newly promulgated accounting standards has focused exclusively on public enterprises and used economic cost-benefit frameworks as their main method of analysis. The current study draws on the theories of organisational diffusion of innovation and reasoned action to identify the factors that influence the adoption timing decision of private firms in relation to the new Canadian GAAP for private enterprises, published in 2009. It is shown that knowledge, relative advantages, compatibility, complexity and subjective norms play a significant role in managers’ adoption behaviour, as do sponsorship, managerial tenure and work groups. These results have broad implications for private enterprise managers, financial statement users, standard setters and academics.

Keywords: Accounting standards for private enterprises, adoption timing decision, Canada, diffusion of innovation theory, theory of reasoned action

JEL Classification: M41

Suggested Citation

Durocher, Sylvain and Fortin, Anne, Timing the Adoption of the New Canadian GAAP for Private Enterprises (October 15, 2011). CAAA Annual Conference 2012. Available at SSRN: https://ssrn.com/abstract=1963785 or http://dx.doi.org/10.2139/ssrn.1963785

Sylvain Durocher (Contact Author)

University of Ottawa - Telfer School of Management ( email )

136 Jean-Jacques Lussier Street
Ottawa, Ontario K1N 6N5
Canada

Anne Fortin

Université du Québec à Montréal ( email )

Département des sciences comptables
C.P. 8888, Succ. Centre Ville
Montreal, Quebec H3C3P8
Canada

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