The Influence of Country, Industry, and Topic Factors on IFRS Policy Choice.

This paper proposes a framework for understanding management's decision-making on observable accounting policy choices. The framework is used to hypothesize how country, industry, and topic factors influence policy choice under International Financial Reporting Standards (IFRS). The hypotheses are t...

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Published in:Abacus Vol. 50; no. 4; pp. 386 - 422
Main Authors: Stadler, Christian, Nobes, Christopher W.
Format: Article
Published: Wiley-Blackwell Dec2014
Subjects:
Online Access:View this record in EBSCOhost
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        atl: The Influence of Country, Industry, and Topic Factors on IFRS Policy Choice.
      aug:
        au:
          Stadler, Christian
          Nobes, Christopher W.
        affil:
          Lancaster University
          Royal Holloway, University of London
          University of Sydney
      su:
        Accounting
        International Financial Reporting Standards
        Decision making
        Management
        Financial statements
      sug:
        subj:
          Accounting
          International Financial Reporting Standards
          Decision making
          Management
          Financial statements
      keyword:
        Accounting choice
        IFRS
        International differences
      ab: This paper proposes a framework for understanding management's decision-making on observable accounting policy choices. The framework is used to hypothesize how country, industry, and topic factors influence policy choice under International Financial Reporting Standards (IFRS). The hypotheses are tested on the choices made by the largest firms from 10 jurisdictions on a comprehensive set of IFRS policy topics, which are hand-collected from the financial statements. The results are consistent with the framework: country factors are particularly influential when the choice does not affect an important accounting number; and industry and topic factors influence the choice on some topics. Overall, we find that country factors have the greatest influence on IFRS policy choice.
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    language: English
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