Please use this identifier to cite or link to this item: https://une.intersearch.com.au/unejspui/handle/1959.11/10675
Title: Influence of a mandatory IFRS adoption on accounting practice: Evidence from Australia, Hong Kong and the United Kingdom
Contributor(s): Bayerlein, Leopold  (author)orcid ; Farooque, Omar  (author)orcid 
Publication Date: 2012
DOI: 10.1108/13217341211242169
Handle Link: https://hdl.handle.net/1959.11/10675
Abstract: Purpose - The purpose of this paper is to evaluate the changes of accounting policy choices and the harmonisation of accounting practices for two important financial reporting items within and between three IFRS adopting countries. Furthermore, it aims to address methodological shortcomings in the prior harmonisation literature through the introduction of two newly developed significance assessment methodologies. Design/methodology/approach - The influence of the mandatory IFRS adoption in Australia (AUS), Hong Kong (HK) and the UK on deferred taxation (DT) and goodwill (GW) accounting practices as well as the within and between country harmonisation of accounting practices is investigated through an event type study. These investigations are conducted using a McNemar test with Bowker extension as well as the Split C-Index with a newly developed bootstrapping significance testing methodology. Findings - This study demonstrates that the mandatory IFRS adoption in the analysed countries is linked to a significant harmonisation of DT and GW accounting practices between AUS, HK and the UK. Furthermore, the increase of adequate accounting policy information in the financial reporting documents of UK firms over the period of this study is identified as an important harmonisation accelerator. Originality/value - This study adds to the prior literature due to its focus on the mandatory IFRS adoption within the analysed countries. Furthermore, the introduction of two newly developed methodologies to evaluate the significance of accounting policy choice changes and harmonisation over time addresses an important methodological shortcoming in the prior literature.
Publication Type: Journal Article
Source of Publication: Asian Review of Accounting, 20(2), p. 93-118
Publisher: Emerald Group Publishing Limited
Place of Publication: United Kingdom
ISSN: 1758-8863
1321-7348
Field of Research (FOR): 150103 Financial Accounting
150104 International Accounting
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
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Appears in Collections:Journal Article
UNE Business School

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