Naslov
A review and analysis of methods for measuring compliance with IFRS mandatory disclosure requirements

Autori
Perkušić, Dijana

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Proceedings of 5th Conference Contemporary Issues in Economics and Technology – CIET 2022 / - Split : Sveučilišni odjel za stručne studije Sveučilišta u Splitu, 2022, 78-90

ISBN
978-953-7220-70-9

Skup
5th Conference Contemporary Issues in Economics and Technology (CIET 2022)

Mjesto i datum
Valencia, Španjolska, 16.06.2022. - 17.06.2022

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
International Financial Reporting Standards, financial reporting, mandatory disclosure, compliance, literature review

Sažetak
This paper analyses different methods for measuring the comparability of financial reporting of listed firms. In the past, scientists used different methods depending on the sample, namely time and number of countries or the number of firms. In the 1980s and 1990s, firms used national accounting standards or older versions of IASs issued before 2001, which allowed many alternative accounting methods to recognize and measure items in the financial statements. These studies used various indices, and according to them, the comparability of accounting practices increases when firms apply the same accounting methods to recognize and measure items in the financial statements. Since 2005, the financial reporting framework of the EU Member States has been harmonized by introducing the mandatory application of IFRS for listed firms. Today, 144 countries permit or require IFRSs for domestic listed firms, so scientists are focused on measuring the compliance levels of listed firms with IFRS mandatory disclosure requirements. This paper highlights the importance of the method used to measure compliance with IFRS mandatory disclosure requirements, due to the significant differences that may arise from the use of the different methods. The number of disclosure items required by different standards varies considerably, some standards require a large number of items to be disclosed (e.g. IAS 1 "Presentation of financial statements") whilst some others require only a few (e.g. IAS 2 "Inventories"). This may become a significant problem when studies examine compliance with IFRS mandatory disclosures because standards that require more items to be disclosed are unintentionally not treated equally with those that require fewer items to be disclosed. The main purpose of this paper is to identify used methods in the literature on compliance with IFRS mandatory disclosure requirements for the post-2005 period. The paper highlights the fact that scientists and all interested parties in financial reporting, must be cautious when interpreting the research results of prior studies on compliance with IFRS mandatory disclosure requirements due to the implications of the used method. Based on the given review, the paper suggests and highlights the importance of measuring compliance with IFRS mandatory disclosure requirements in future studies using simultaneously different methods.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA