The impact of IFRS on the European Union
- 29 May 2009
- journal article
- Published by Emerald in Journal of Applied Accounting Research
- Vol. 10 (1), 33-55
- https://doi.org/10.1108/09675420910963388
Abstract
Purpose – The purpose of the this paper is to discover the quantitative impact of International Financial Reporting Standards (IFRS) on financial reporting of European countries and evaluate if this impact is connected with the traditional accounting system in which each country is classified, either the Anglo-Saxon or the continental-European accounting system. Design/methodology/approach – First, the authors quantify the IFRS impact on each country and make a comparative analysis of that impact among countries. Then, the authors apply a cluster analysis in order to group European countries on the basis of the different effects of IFRS application. Findings – The results obtained show that the first application of IFRS has had different effects on the financial reporting among countries. The cluster analysis identifies four groups which show that the impact of IFRS on financial statements of European firms is not related to traditional accounting systems. Originality/value – The main contribution of the paper is that it studies the impact of mandatory IFRS application for several European countries and shows a comparative analysis, grouping the countries on the basis of that impact. Previous literature mainly gathers research related to specific countries, individually considered, or to different IFRS effects that do not reflect quantitative impacts.Keywords
This publication has 31 references indexed in Scilit:
- Mandatory IFRS Reporting around the World: Early Evidence on the Economic ConsequencesJournal of Accounting Research, 2008
- Mandatory IFRS Reporting Around the World: Early Evidence on the Economic ConsequencesSSRN Electronic Journal, 2008
- German Reporting Practices: An Analysis of Reconciliations from German Commercial Code to IFRS or US GAAPAdvances in International Accounting, 2007
- Measuring the Impact of International Financial Reporting Standards (IFRS) in Firm Reporting: The Case of PortugalSSRN Electronic Journal, 2007
- Value Relevance of German Gaap and IFRS Consolidated Financial Reporting: An Empirical Analysis on the Frankfurt Stock ExchangeSSRN Electronic Journal, 2007
- Europe and America – Together or Apart: An Empirical Test of Differences in Actual Reported ResultsAdvances in International Accounting, 2006
- Applying IFRS in Germany: Determinants and ConsequencesSSRN Electronic Journal, 2006
- On accounting classification and the international harmonisation debateAccounting, Organizations and Society, 2004
- Accounting classification and the international harmonisation debate: a reply to a commentAccounting, Organizations and Society, 2004
- Accounting classification and the international harmonisation debate — an empirical investigationAccounting, Organizations and Society, 2001