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
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: Suggested Citation