Disclosure Comparability Under IFRS

34 Pages Posted: 21 Jun 2013

See all articles by Skrålan Vergauwe

Skrålan Vergauwe

EDHEC Business School - Department of Accounting

Ann Gaeremynck

KU Leuven

Date Written: June 20, 2013


Proponents of IFRS argue that applying uniform accounting standards leads to comparable financial statements. While previous studies have illustrated that initial IFRS disclosure quality significantly varies upon IFRS adoption, there is little evidence whether disclosures become more comparable after IFRS adoption. Using hand-collected data on 18 disclosure items of European real estate firms over the period 2005 to 2010, we find that disclosures improve and become more comparable over time. Furthermore, our results suggest that an exogenous shock, such as the financial crisis, accelerates the process to better and more comparable disclosure practices. This process is more pronounced and faster for valuation-related than for general disclosures. These results are of interest in the debate whether a principles-based accounting framework such as IFRS can generate comparable information.

Keywords: IFRS, disclosure, comparability

JEL Classification: G10, G18, M41, M42

Suggested Citation

Vergauwe, Skrålan and Gaeremynck, Ann, Disclosure Comparability Under IFRS (June 20, 2013). Available at SSRN: https://ssrn.com/abstract=2282593 or http://dx.doi.org/10.2139/ssrn.2282593

Skrålan Vergauwe (Contact Author)

EDHEC Business School - Department of Accounting ( email )


Ann Gaeremynck

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant B-3000
3216326921 (Phone)

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