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Does mandatory adoption of IFRS guarantee compliance?

Misirlioǧlu, Ismail Ufuk; Yükseltürk, Osman; Misirlioglu, Ismail Ufuk; Yukselturk, Osman; Tucker, Jon


Ismail Ufuk Misirlioǧlu

Osman Yükseltürk

Osman Yukselturk
AHOD in PG Accounting & Economics Prog Cluster


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.


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.

Journal Article Type Article
Publication Date Sep 1, 2013
Journal International Journal of Accounting
Print ISSN 0020-7063
Publisher World Scientific Publishing
Peer Reviewed Peer Reviewed
Volume 48
Issue 3
Pages 327-363
Keywords international financial reporting standards, measurement, disclosure, mandatory IFRS adoption, Turkey
Public URL
Publisher URL


Does Mandatory Adoption of IFRS Guarantee Compliance.docx (14 Kb)

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