Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1003189 | Journal of International Accounting, Auditing and Taxation | 2010 | 11 Pages |
This study investigates the effects of the transition from Greek GAAP to IFRS on the financial results of Greek listed firms. The study also examines the factors associated with the provision of voluntary IFRS disclosures before the official period of adoption, the degree of earnings management under IFRS, and the value relevance of IFRS-based accounting numbers. The findings show that the implementation of IFRS has introduced volatility in key income statement and balance sheet measures of Greek firms. Although the effects of IFRS adoption in the first year of adoption appear to be unfavourable, perhaps due to the IFRS transition costs, firms’ financial measures improved significantly in the subsequent period. This result explains why in the official adoption period there is some evidence of earnings management, which is reduced in the subsequent period. The factors associated with providing voluntary IFRS disclosures before the official period of adoption include firm size and debt and equity financing needs. The study provides evidence that IFRS adoption leads to more value relevant accounting measures.