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Does mandatory adoption of IFRS guarantee compliance?

Misirlio?lu, Ismail Ufuk; Y�kselt�rk, Osman; Misirlioglu, Ismail Ufuk; Yukselturk, Osman; Tucker, Jon

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Authors

Ismail Ufuk Misirlio?lu

Osman Y�kselt�rk

Osman Yukselturk Osman.Yukselturk@uwe.ac.uk
Associate Director - Academic Enhancement - UG



Abstract

In this study, we examine whether the mandatory adoption of IFRS by Turkish listed companies in 2005 was successful in practice and what role firm and country level factors played in the adoption. We determine the firm-specific factors that affect the degree of change in both measurement and disclosures by conducting a multivariate analysis. Further, we conduct interviews with external auditors to throw light on the challenges associated with adoption and the outcomes of adoption. We find that while the standards clearly impact certain accounts, adoption is not uniform across accounts. The overall measurement change is positively associated with auditor prominence and gearing, and negatively associated with the degree of free float. With regard to disclosures, we find that although there are some improvements, the vast majority of the disclosure items required by IFRS were not disclosed. Auditor type, size, and the degree of foreign ownership of shares exert a positive impact on the overall improvement in disclosures. Our interview analysis reveals that the dominance of tax laws, the lack of enforcement, corporate governance issues, and inadequate management information systems were all significant constraints to the successful adoption of IFRS. © 2013 University of Illinois.

Citation

Yükseltürk, O., Misirlioǧlu, I. U., Misirlioglu, I. U., Tucker, J., & Yukselturk, O. (2013). Does mandatory adoption of IFRS guarantee compliance?. International Journal of Accounting, 48(3), 327-363. https://doi.org/10.1016/j.intacc.2013.07.002

Journal Article Type Article
Publication Date Sep 1, 2013
Deposit Date Jan 28, 2014
Publicly Available Date Mar 29, 2024
Journal International Journal of Accounting
Print ISSN 0020-7063
Publisher World Scientific Publishing
Peer Reviewed Peer Reviewed
Volume 48
Issue 3
Pages 327-363
DOI https://doi.org/10.1016/j.intacc.2013.07.002
Keywords international financial reporting standards, measurement, disclosure, mandatory IFRS adoption, Turkey
Public URL https://uwe-repository.worktribe.com/output/928621
Publisher URL http://dx.doi.org/10.1016/j.intacc.2013.07.002

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