Ismail Ufuk Misirlioǧlu
Does mandatory adoption of IFRS guarantee compliance?
Misirlioǧlu, Ismail Ufuk; Yükseltürk, Osman; Misirlioglu, Ismail Ufuk; Yukselturk, Osman; Tucker, Jon
Ismail Misirlioglu Ismail.Misirlioglu@uwe.ac.uk
Senior Lecturer in Accounting & Finance
Osman Yukselturk Osman.Yukselturk@uwe.ac.uk
AHOD in PG Accounting & Economics Prog Cluster
Professor Jon Tucker Jon.Tucker@uwe.ac.uk
Emeritus Professor in Finance
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.
|Journal Article Type||Article|
|Publication Date||Sep 1, 2013|
|Journal||International Journal of Accounting|
|Publisher||World Scientific Publishing|
|Peer Reviewed||Peer Reviewed|
|APA6 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|
|Keywords||international financial reporting standards, measurement, disclosure, mandatory IFRS adoption, Turkey|
Does Mandatory Adoption of IFRS Guarantee Compliance.docx
Does Mandatory Adoption of IFRS Guarantee Compliance2.pdf
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