We investigate how the adoption of IFRS 3, business combinations, affected reported goodwill and whether the change was relevant for stock market valuation of companies. We use data for all companies listed at the main Swedish stock exchanges. We find some evidence suggesting that aggregated goodwill impairment charges in 2005 are lower than aggregated goodwill amortizations in 2004. Hence, goo...

After adoption of International Financial Reporting Standards (IFRS) for consolidated financial statements by European-listed companies, a number of European countries still require the use of local standards in the preparation of legal entity financial statements. This study investigates whether this requirement can be explained by a low demand for high-quality financial reporting and an orien...

Let me first thank Ernst and Young for the invitation to give today’s keynote address, on the Financial Reporting Workshop for the Banking Sector. Looking at the agenda, this meeting in the next two days will dwell on a number of important accounting and regulatory issues. Therefore, to help set the stage for the discussion to follow, I would like to take this opportunity to expound on the Cent...

People’s Republic of China has a long history of accounting and accounting reforms. This study focuses on “whether China should continue its IFRS-based domestic accounting standards or full convergence with the IFRS is more appropriate”? Both quantitative and qualitative approaches are applied to answer the research question of this work. Binary choice model has been used in the statistical ana...

This paper discusses the nature of the challenges related to the linguistic translation of IFRS and explores some of procedures that are aimed to respond to these challenges. Using archival data about the work of the Translation Review Committee (RC), translation guidelines and other materials provided by IASB as well as nine interviews of two translators and six RC members, the translation pra...

Prior studies illustrate the issues of agency theory stemmed from the separation between ownership and management. As such, information asymmetry between the agent and principal is the major reason why agent can take advantages from adverse selection and moral hazard, which is the obvious problem in recent accounting scandals. Boards of directors therefore have fiduciary duties to exercise effe...