WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 16, 2019
IFRS Application and Its Impact on the Accounting Information Quality: Palestine as a Case Study
Authors: ,
Abstract: The primary goal of conducting this paper is to investigate the consequences IFRS mandatory adoption has concerning the accounting information quality for Palestinian listed firms. Discretionary accruals and accruals quality measures are utilized to operationalize the quality of accounting information. The sample in the study contains an examination of 378 firm-year observations covering years from 2003 to 2016. The overall result shows mixed evidence suggesting that the IFRS mandatory adoption declines the extent of discretionary accruals, which means a decline in earnings management and manipulation activities. Furthermore, the results of the study show a lower accruals quality in IFRS mandatory adoption time. This paper builds on the current debate about the ramifications relating to the mandatory adoption of IFRS in emerging countries and displays that adopting IFRS affects accounting information quality. However, the effect differs from one accounting quality measure to another.
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Pages: 514-524
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #58