Compliance with IFRS 3, IAS 36 and IAS 38 by Canadian Companies: Economic Incentives or Opportunistic Choices?

Posted: 18 Jan 2019 Last revised: 12 Feb 2020

Date Written: January 18, 2019

Abstract

We examine the level of compliance with mandated requirements of IFRS 3, IAS 36 and IAS 38 by listed Canadian companies, four years after their adoption. We also evaluate possible economic and opportunistic incentives and the role of corporate governance characteristics in shaping the level of compliance. Using a compliance index by company our results show that compliance increases with the materiality of intangible assets and decreases with profitability and that industry moderates the association with economic incentives. This indicates that competing theories coexists in explaining Canadian companies' accounting practices. We find a weak evidence that an independent chief of the board is associated with a higher level of compliance.

Keywords: Compliance index, accounting practices, IFRS, Canada

JEL Classification: M41, M48, G15

Suggested Citation

Affes, Houda and Makni-Fourati, Yosra, Compliance with IFRS 3, IAS 36 and IAS 38 by Canadian Companies: Economic Incentives or Opportunistic Choices? (January 18, 2019). 2019 Canadian Academic Accounting Association (CAAA) Annual Conference. Available at SSRN: https://ssrn.com/abstract=3318437 or http://dx.doi.org/10.2139/ssrn.3318437

Houda Affes (Contact Author)

TELUQ ( email )

3800 saint denis street
office 12.076
Montreal, CA Quebec H2S 3L5
Canada

Yosra Makni-Fourati

University of Sfax ( email )

Route de l'aéroport km 0.5
Sfax, 3029
Tunisia

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
340
PlumX Metrics