chapter  6
12 Pages

The Impact of Mandatory Adoption of IFRS on Income Statement and Balance Sheet Properties

ByGARY GRUDNITSKI, FRANÇOIS AUBERT

In this chapter we report the results of conducting a two-stage investigation on the effects and consequences of mandatory adoption of International Financial Reporting Standards (IFRS) in France, Germany, Italy, Portugal, Spain, Sweden, and the United Kingdom. In the fi rst stage we determine the impact of mandatory adoption of IFRS by identifying differences in key accounting measures computed under IFRS and in accord with a country’s local generally accepted accounting principles (LG). In the second stage of our analysis we address whether there is support for the proposition that the adoption of an IFRS-reporting regime produces quality accruals in these countries.