Insights into Accounting Choice from the Adoption Timing of International Financial Reporting Standards

22 Pages Posted: 5 Apr 2017

Date Written: April 2017

Abstract

This paper collects survey evidence on the costs and benefits of adopting International Financial Reporting Standards (IFRS). It also examines the motivations for the timing of IFRS adoption. Significant differences exist between early and late adopters for three of nine benefits and for one of six cost measures. No significant differences exist in terms of firm size or the impact of IFRS on contracts. Early adopters perceive themselves as market leaders. They are more certain about the manageability of implementing IFRS and are more specific with regard to the impact of IFRS adoption. Late adoption decisions are motivated by adverse consequences and uncertainty.

Keywords: Accounting choice, Contracting costs, Costs and benefits, International Financial Reporting Standards adoption

Suggested Citation

Stent, Warwick John and Bradbury, Michael E. and Hooks, Jill, Insights into Accounting Choice from the Adoption Timing of International Financial Reporting Standards (April 2017). Accounting & Finance, Vol. 57, pp. 255-276, 2017. Available at SSRN: https://ssrn.com/abstract=2945714 or http://dx.doi.org/10.1111/acfi.12145

Warwick John Stent (Contact Author)

Massey University ( email )

Private Bag 11 222
Palmerston North, Manawatu 4442
New Zealand

Michael E. Bradbury

Massey University ( email )

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

Jill Hooks

Massey University

Private Bag 11 222
Palmerston North, Manawatu 4442
New Zealand

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