IFRS Adoption - Evidence from a Regulator

24 Pages Posted: 22 Dec 2016

See all articles by Michael E. Bradbury

Michael E. Bradbury

Massey University

Ahsan Habib

Massey University - School of Accountancy; Massey University

Md. Borhan Uddin Bhuiyan

Massey University - School of Accountancy

Date Written: December 21, 2016

Abstract

We provide descriptive evidence on the enforcement of International Financial Reporting Standards (IFRS) adoption in New Zealand. Although there remains a voluminous literature on the consequences of IFRS adoption, very little is known about the securities regulators’ enforcement actions in case of non-compliance with IFRS. In this paper we document the matters raised by the Securities Commission of New Zealand in their Financial Reporting Surveillance Program for the period 2007 and 2010. The results show that main enquiries related to financial statement presentation, financial instruments disclosures, and related party disclosures. Regulators adopt a different perspective to auditors on the importance of various IFRS. This suggests that private enforcement (auditing) and public enforcement (regulation) are complementary activities. We also discuss the implications for current IASB issues, such as materiality and professional judgment in principles-based standards.

Keywords: Security Regulation, Enforcement, IFRS Adoption, Professional Judgment, Materiality

JEL Classification: G15, K22, M41, M42, M48

Suggested Citation

Bradbury, Michael E. and Habib, Ahsan and Bhuiyan, Md. Borhan Uddin, IFRS Adoption - Evidence from a Regulator (December 21, 2016). 8th Conference on Financial Markets and Corporate Governance (FMCG) 2017. Available at SSRN: https://ssrn.com/abstract=2888705 or http://dx.doi.org/10.2139/ssrn.2888705

Michael E. Bradbury (Contact Author)

Massey University ( email )

School of Accountancy
Private Bag 102 904
Auckland
New Zealand
64 9 414 0800 (Phone)
64 9 441 8133 (Fax)

Ahsan Habib

Massey University - School of Accountancy ( email )

Auckland
New Zealand

Massey University ( email )

Auckland
New Zealand

Md. Borhan Uddin Bhuiyan

Massey University - School of Accountancy ( email )

Palmerston North
New Zealand
+6494140800 (Phone)

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