Article

Transition to IFRS and compliance with mandatory disclosure requirements: What is the signal?

Details

Citation

Tsalavoutas I (2011) Transition to IFRS and compliance with mandatory disclosure requirements: What is the signal?. Advances in Accounting, 27 (2), pp. 390-405. https://doi.org/10.1016/j.adiac.2011.08.006

Abstract
The present study examines 153 Greek listed companies' compliance with all IFRS mandatory disclosure requirements during 2005 and complements and extends prior literature in the following way. The unique setting i.e., measuring compliance with IFRS mandatory disclosure requirements during the first year of IFRS implementation, allows for examination of the possibility that the changes in the 2004 shareholders' equity and net income, as a result of the adoption of IFRS, constitute explanatory factors for compliance. Thus, this study hypothesises that, in addition to the financial measures and other corporate characteristics that prior literature identifies as proxies for explaining compliance, a significant change in fundamental financial measures, because of the change in the accounting regime, may also explain compliance based on the premises of the relevant disclosure theories. The findings confirm these hypotheses. This study also makes a methodological contribution on measuring compliance with all IFRS mandatory disclosure requirements by using two different disclosure index methods and pointing out the different conclusions may be drawn as a result.

Keywords
IFRS; Mandatory disclosures; Compliance; Greece

Journal
Advances in Accounting: Volume 27, Issue 2

StatusPublished
Publication date31/12/2011
URLhttp://hdl.handle.net/1893/10705
PublisherElsevier
ISSN0882-6110