Does Ifrs Improve the Usefulness of Accounting Information in a Code-Law Country?

37 Pages Posted: 1 Jun 2006  

Anna-Maija Lantto

University of Vaasa

Date Written: March 12, 2007

Abstract

This study investigates whether IFRS (International Financial Reporting Standards) improves the usefulness of accounting information in a chosen code-law country (i.e. Finland) that has a strong system of legal enforcement and high quality domestic accounting standards. Empirical analyses based on three surveys, run by financial analysts, managers and auditors, support the hypothesis that new information provided by IFRS is relevant. Even though the results show that managers and auditors deem information prepared under many IFRS/IAS-standards reliable, the results show that they are, overall, neutral towards the reliability of information prepared by using judgment under IFRS.

Keywords: International Financial Reporting Standards, usefulness, relevance, reliability, survey

JEL Classification: M41, M44, M47, G18, G15

Suggested Citation

Lantto, Anna-Maija, Does Ifrs Improve the Usefulness of Accounting Information in a Code-Law Country? (March 12, 2007). Available at SSRN: https://ssrn.com/abstract=905218 or http://dx.doi.org/10.2139/ssrn.905218

Anna-Maija Lantto (Contact Author)

University of Vaasa ( email )

PO Box 700
Vaasa, FI-65101
Finland

Paper statistics

Downloads
2,132
Rank
4,862
Abstract Views
6,815