This study analyzes the impact of IFRS adoption on earnings management in the emerging country which is probably the most important economy in the world that has adopted IFRS mandatorily, Brazil. We examine the distributions of reported earnings in order to find discontinuities around the zero threshold, before and after IFRS adoption, for a sample of Brazilian listed firms for the period 2004-2011. Our findings provide empirical evidence of discontinuities before, but not after, the adoption of IFRS in Brazil. The results of our study suggest that mandatory adoption of IFRS by Brazilian firms is associated with a decrease in earnings management, mainly during the period of full IFRS adoption (2010-2011).
As researchers reveal the increasing complexities of accounting practices in emerging economies, there is a growing need for an overview of the topic. The Routledge Companion to Accounting in Emerging Economies is a prestige work offering an introduction to current scholarship in the field, with indications of future directions for enhancing the contribution to knowledge. With regional coverage of key emerging economies such as Brazil, Russia, India and China, the team of contributors analyse issues in accounting in detail, while shedding light on the role of the accounting profession in providing accountability and governance across the developing world. Each chapter is headed up by an internationally recognised author who is a leading expert in designing and implementing research approaches to the topic. Within the team of authors, some are experienced senior contributors while others are developing new avenues of exploration on the basis of high-quality doctoral study. This range of author experience has been deliberately chosen to allow the reader to envisage working in such a team while growing in confidence. This unique reference offers a comprehensive guide to advanced students, academics, practitioners and policy makers on the current state of, and potential developments in, accounting in developing economies globally. This work will be of particular interest to students and researchers looking to identify topics in emerging economies, academics and practitioners seeking convenient access to an unfamiliar area, and established researchers seeking a single repository on the current state of knowledge, current debates and relevant literature.
Accounting has often been described as the language of business. As the increasing competition of overseas markets begins to affect even the smallest local companies, many more business professionals must become fluent in accounting principles and practice. Standardization of Financial Reporting and Accounting in Latin American Countries highlights the recent move to International Financial Reporting Standards (IFRS) and addresses some of the concerns raised due to cultural differences and the level of enforcement of these standards in separate countries. Describing the evolution of both financial and managerial accounting due to the adoption of IFRS, this book is an essential reference source for both students and seasoned professionals in the fields of accounting, finance, and related management fields, especially those with an international emphasis.
This thesis investigates for three emerging countries from the Latin American region - Brazil, Mexico and Chile - the impact of IFRS adoption on accounting quality in terms of value relevance of earnings and book value of equity. Therefore, the institutional setting in Latin America is analyzed profoundly in order to identify country related factors potentially influencing accounting quality. Following, a sample period of four years was defined to examine empirically whether earnings and book value of equity are more value relevant after the mandatory adoption of IFRS in Brazil, Mexico and Chile (H1) and whether earnings and book value of equity are more value relevant under IFRS than under the domestic accounting standard (H2). The Brazilian sample consists of 136 firm year observations between 2008 and 2011, the Mexican sample consists of 128 firm year observations between 2010 and 2013 and the Chilean sample consists of 128 firm year observations between 2007 and 2010. The results obtained using the method of ordinary least square regression suggest that mandatory IFRS adoption increased the value relevance of earnings and book value of equity in Brazil, while for the Mexican and Chilean sample companies this could not be verified. In conclusion, the overall findings of this thesis show that countries from the same geographical region differ greatly with regards to their institutional framework and the effect of IFRS adoption on accounting quality was found to differ among countries in the Latin American area. This highlights the importance of country related institutional factors to be considered in the debate of accounting harmonization.
Contributions to International Accounting aims to address a vital gap in research by focusing on providing relevant and timely studies on International Financial Reporting Standards implementation for local and international policymakers.
Kanodia presents a new approach to the study of accounting measurement that argues that how firms' economic transactions, earnings, and capital flows are measured and reported to the capital markets has substantial effects on the firms' real decisions and on the allocation of resources.
Better designed and implemented fiscal regimes for oil, gas, and mining can make a substantial contribution to the revenue needs of many developing countries while ensuring an attractive return for investors, according to a new policy paper from the International Monetary Fund. Revenues from extractive industries (EIs) have major macroeconomic implications. The EIs account for over half of government revenues in many petroleum-rich countries, and for over 20 percent in mining countries. About one-third of IMF member countries find (or could find) resource revenues “macro-critical” – especially with large numbers of recent new discoveries and planned oil, gas, and mining developments. IMF policy advice and technical assistance in the field has massively expanded in recent years – driven by demand from member countries and supported by increased donor finance. The paper sets out the analytical framework underpinning, and key elements of, the country-specific advice given. Also available in Arabic: ????? ??????? ?????? ???????? ???????????: ??????? ???????? Also available in French: Régimes fiscaux des industries extractives: conception et application Also available in Spanish: Regímenes fiscales de las industrias extractivas: Diseño y aplicación
With the global economy still in recovery, it is more important than ever for individuals and organizations to be aware of their money and its potential for both depreciation and growth. Banking, Finance, and Accounting: Concepts, Methodologies, Tools, and Applications investigates recent advances and undertakings in the financial industry to better equip all members of the world economy with the tools and insights needed to weather any shift in the economic climate. With chapters on topics ranging from investment portfolios to credit unions, this multi-volume reference source will serve as a crucial resource for managers, investors, brokers, and all others within the banking industry.
Perspectives on International Financial Reporting and Auditing in the Airline Industry draws on the framework of financial reporting in the global airline industry for the year 2018 and focuses on the airline financial reporting based on IFRSs and audit of airline financial reporting based on International Standards on Auditing.
