The Experts below are selected from a list of 48723 Experts worldwide ranked by ideXlab platform
Hsiaotang Hsu - One of the best experts on this subject based on the ideXlab platform.
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tangible long lived asset impairments and future operating cash flows under u s gaap and IFRS
The Accounting Review, 2018Co-Authors: Elizabeth A Gordon, Hsiaotang HsuAbstract:ABSTRACT This paper investigates the predictive value of tangible long-lived asset impairments for changes in future operating cash flows under U.S. GAAP and IFRS. We find that impairments reported under IFRS are negatively associated with changes in future operating cash flows, whereas those under U.S. GAAP, on average, are not. We investigate whether differences in the predictive value are attributable to differences in recognition or measurement, providing evidence suggesting that impairment recognition under U.S. GAAP is delayed. Evidence also suggests that the value-in-use measurement attribute, allowed under IFRS, does not induce under-impairing as IFRS and U.S. GAAP impairments are similarly related to future impairments. The main result of a negative association under IFRS, but not U.S. GAAP, holds after considering future impairments to control for measurement differences, macro-economic factors, and firm reporting incentives. Further, impairment losses under IFRS are more predictive in high-enfo...
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tangible long lived asset impairments and future operating cash flows under us gaap and IFRS
Social Science Research Network, 2016Co-Authors: Elizabeth A Gordon, Hsiaotang HsuAbstract:This paper investigates the ability of long-lived asset impairments to predict future operating cash flows under US GAAP and IFRS. We provide evidence that total impairments reported under IFRS are negatively and persistently associated with future operating cash flows whereas those under US GAAP generally are not. Under IFRS, impairments of tangible long-lived assets are more informative than those of intangible assets and goodwill. We further explore the predictive content of reported write-offs under IFRS in different institutional settings, including legal origins and enforcement, and find that impairment losses under IFRS are more informative in common law and high enforcement countries. In general, the findings suggest greater informativeness of long-lived asset impairments under IFRS than US GAAP. The informativeness, however, depends on the type of assets impaired and the institutional characteristics.
Peter F Pope - One of the best experts on this subject based on the ideXlab platform.
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are international accounting standards more credit relevant than domestic standards
Accounting and Business Research, 2017Co-Authors: Annita Florou, Urska Kosi, Peter F PopeAbstract:We examine whether the credit relevance of financial statements, defined as the ability of accounting numbers to explain credit ratings, is higher after firms are required to report under International Financial Reporting Standards (IFRS). We find an improvement in credit relevance for firms in 17 countries after mandatory IFRS reporting is introduced in 2005; this increase is higher than that reported for a matched sample of US firms. The increase in credit relevance is particularly pronounced for higher risk speculative-grade issuers, where accounting information is predicted to be more important; and for IFRS adopters with large first-time reconciliations, where the impact of IFRS is expected to be greater. These tests provide reassurance that the overall enhancement in estimated credit relevance is driven by accounting changes related to IFRS adoption. Our results suggest that credit rating analysts’ views of economic fundamentals are more closely aligned with IFRS numbers, and that analysts anticipat...
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are international accounting standards more credit relevant than domestic standards
Social Science Research Network, 2016Co-Authors: Annita Florou, Urska Kosi, Peter F PopeAbstract:We examine whether the credit relevance of financial statements, defined as the ability of accounting numbers to explain credit ratings, is higher after firms are required to report under International Financial Reporting Standards (IFRS). We find an improvement in credit relevance for firms in seventeen countries after mandatory IFRS reporting is introduced in 2005; this increase is higher than that reported for a matched sample of US firms. The increase in credit relevance is particularly pronounced for higher risk speculative-grade issuers, where accounting information is predicted to be more important; and for IFRS adopters with large first-time reconciliations, where the impact of IFRS is expected to be greater. These tests provide reassurance that the overall enhancement in estimated credit relevance is driven by accounting changes related to IFRS adoption. Our results suggest that credit rating analysts’ views of economic fundamentals are more closely aligned with IFRS numbers, and that analysts anticipate at least some of the effects of the IFRS transition.
Elizabeth A Gordon - One of the best experts on this subject based on the ideXlab platform.
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tangible long lived asset impairments and future operating cash flows under u s gaap and IFRS
The Accounting Review, 2018Co-Authors: Elizabeth A Gordon, Hsiaotang HsuAbstract:ABSTRACT This paper investigates the predictive value of tangible long-lived asset impairments for changes in future operating cash flows under U.S. GAAP and IFRS. We find that impairments reported under IFRS are negatively associated with changes in future operating cash flows, whereas those under U.S. GAAP, on average, are not. We investigate whether differences in the predictive value are attributable to differences in recognition or measurement, providing evidence suggesting that impairment recognition under U.S. GAAP is delayed. Evidence also suggests that the value-in-use measurement attribute, allowed under IFRS, does not induce under-impairing as IFRS and U.S. GAAP impairments are similarly related to future impairments. The main result of a negative association under IFRS, but not U.S. GAAP, holds after considering future impairments to control for measurement differences, macro-economic factors, and firm reporting incentives. Further, impairment losses under IFRS are more predictive in high-enfo...
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tangible long lived asset impairments and future operating cash flows under us gaap and IFRS
Social Science Research Network, 2016Co-Authors: Elizabeth A Gordon, Hsiaotang HsuAbstract:This paper investigates the ability of long-lived asset impairments to predict future operating cash flows under US GAAP and IFRS. We provide evidence that total impairments reported under IFRS are negatively and persistently associated with future operating cash flows whereas those under US GAAP generally are not. Under IFRS, impairments of tangible long-lived assets are more informative than those of intangible assets and goodwill. We further explore the predictive content of reported write-offs under IFRS in different institutional settings, including legal origins and enforcement, and find that impairment losses under IFRS are more informative in common law and high enforcement countries. In general, the findings suggest greater informativeness of long-lived asset impairments under IFRS than US GAAP. The informativeness, however, depends on the type of assets impaired and the institutional characteristics.
Nadia Albu - One of the best experts on this subject based on the ideXlab platform.
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the role and current status of IFRS in the completion of national accounting rules evidence from romania
Accounting in Europe, 2017Co-Authors: Cătălin Nicolae Albu, Nadia AlbuAbstract:Romanian accounting rules (RAR) had followed a convergence process with International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) since 1999, and the level of convergence has increased over time. The Romanian accounting regulator continues to follow IAS/IFRS in internalizing the Accounting Directive 2013/34/EU. Only a few major differences still exist (some of them due the restrictions in the Accounting Directive 2013/34/EU) between RAR and IFRS. However, RAR lack the level of detail existing in IFRS, and IFRS cannot be used in practice as a source of guidance and interpretation. While major stakeholders have a positive attitude towards the convergence with IAS/IFRS, the Romanian accounting regulator intends to keep the control over RAR and avoid differences in interpretations that might have tax consequences. Despite the good level of convergence of RAR with IFRS, practitioners tend to continue to utilize the tax approach as a source of guidance and interpretation.
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international financial reporting standards in an emerging economy lessons from romania
Australian Accounting Review, 2012Co-Authors: Nadia Albu, Cătălin Nicolae AlbuAbstract:International Financial Reporting Standards (IFRS) are a reference point for the modernisation of accounting models in emerging economies. Previous literature documents a diverse IFRS experience, especially among emerging economies. The IFRS implementation strategy and local institutional characteristics shape the way in which the standards are used in practice. We use the Romanian case to illustrate the effect of various contextual factors, some historical, on the process and outcomes of IFRS implementation. We show that IFRS implementation can follow a different pattern in emerging economies.
Lakshmanan Shivakumar - One of the best experts on this subject based on the ideXlab platform.
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contractibility and transparency of financial statement information prepared under IFRS evidence from debt contracts around IFRS adoption
Journal of Accounting Research, 2015Co-Authors: Ray Ball, Lakshmanan ShivakumarAbstract:We outline several properties of IFRS that potentially affect the contractibility or the transparency of financial statement information, and hence the use of that information in debt contracts. Those properties include the increased choice among accounting rules IFRS gives to managers, enhanced rule-making uncertainty, and increased emphasis on fair value accounting. Consistent with reduced contractibility of IFRS financial statement information, we find a significant reduction in accounting-based debt covenants following mandatory IFRS adoption. The reduction in accounting covenant use is associated with measures of the difference between prior domestic standards and IFRS. Because IFRS adoption changed financial reporting in many ways simultaneously, it is difficult to trace the decline in accounting covenant use to individual IFRS properties, though we report larger declines in accounting covenant use in banks, which have a higher proportion of assets and liabilities that are fair-valued. Our findings are better explained by reduced contractibility than by increased transparency, which would predict reduced nonaccounting covenant use as well, whereas we observe increases. Overall, we conclude that IFRS rules sacrifice debt contracting usefulness to achieve other objectives, such as provision of accounting information relevant to valuation.
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contractibility of financial statement information prepared under IFRS evidence from debt contracts around IFRS adoption
2015Co-Authors: Lakshmanan Shivakumar, Ray BallAbstract:We outline several properties of IFRS that potentially affect the contractibility or the transparency of financial statement information, and hence the use of that information in debt contracts. Those properties include the increased choice among accounting rules IFRS gives to managers, enhanced rule-making uncertainty, and increased emphasis on fair value accounting. Consistent with reduced contractibility of IFRS financial statement information, we find a significant reduction in accounting-based debt covenants following mandatory IFRS adoption. The reduction in accounting covenant use is associated with measures of the difference between prior domestic standards and IFRS. Because IFRS adoption changed financial reporting in many ways simultaneously, it is difficult to trace the decline in accounting covenant use to individual IFRS properties, though we report larger declines in accounting covenant use in banks, which have a higher proportion of assets and liabilities that are fair-valued. Our findings are better explained by reduced contractibility than by increased transparency, which would predict reduced nonaccounting covenant use as well, whereas we observe increases. Overall, we conclude that IFRS rules sacrifice debt contracting usefulness to achieve other objectives, such as provision of accounting information relevant to valuation.
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internet appendix to contractibility and transparency of financial statement information prepared under IFRS evidence from debt contracts around IFRS adoption
2015Co-Authors: Ray Ball, Lakshmanan ShivakumarAbstract:A significant reduction in accounting-based debt covenants follows mandatory IFRS adoption, consistent with reduced contractibility of accounting information. We describe several properties of IFRS that could reduce contractibility, including increased flexibility given managers when selecting among and applying accounting rules, increased rule-making uncertainty, and increased emphasis on fair value accounting. The reduction in accounting covenant use is associated with measures of the difference between prior domestic standards and IFRS, defined in terms of both general and fair value accounting standards. Because IFRS adoption changed financial reporting in many ways simultaneously, it is difficult to trace the decline in accounting covenant use to individual IFRS properties, though we report larger declines in accounting covenant use in banks, which have a higher proportion of assets and liabilities that are fair-valued. Overall, IFRS rules appear to sacrifice debt contracting usefulness for objectives such as complying with an accounting measurement model focused on valuation uses.
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contractibility and transparency of financial statement information prepared under IFRS evidence from debt contracts around IFRS adoption
Journal of Accounting Research, 2015Co-Authors: Ray Ball, Lakshmanan ShivakumarAbstract:A significant reduction in accounting-based debt covenants follows mandatory IFRS adoption, consistent with reduced contractibility of accounting information. We describe several properties of IFRS that could reduce contractibility, including increased flexibility given managers when selecting among and applying accounting rules, increased rule-making uncertainty, and increased emphasis on fair value accounting. The reduction in accounting covenant use is associated with measures of the difference between prior domestic standards and IFRS, defined in terms of both general and fair value accounting standards. Because IFRS adoption changed financial reporting in many ways simultaneously, it is difficult to trace the decline in accounting covenant use to individual IFRS properties, though we report larger declines in accounting covenant use in banks, which have a higher proportion of assets and liabilities that are fair-valued. Overall, IFRS rules appear to sacrifice debt contracting usefulness for objectives such as complying with an accounting measurement model focused on valuation uses.
