بینش تجربی بر ادراک شرکت های فهرست شده به زبان اسپانیایی از استانداردهای بین المللی گزارشگری مالی
|کد مقاله||سال انتشار||مقاله انگلیسی||ترجمه فارسی||تعداد کلمات|
|21491||2010||11 صفحه PDF||سفارش دهید||محاسبه نشده|
Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : Journal of International Accounting, Auditing and Taxation, Volume 19, Issue 2, 2010, Pages 110–120
Since 2005, all publicly traded European Union companies must prepare their consolidated statements in accordance with the International Financial Reporting Standards (IFRS). This paper analyzes the consequences of IFRS adoption in a code-law country (Spain), whose context is very different from the Anglo-Saxon system. This study provides evidence on the way that environment can affect Spanish financial managers and chief accountants, when they have to prepare financial reports under high-quality standards such as IFRS. The study used a questionnaire-based survey, which was completed by 63 Spanish listed firms. The results show that IFRS are perceived as a high-quality regulation appropriate for decision-making. However, IFRS are also seen as (1) significantly different from Spanish standards, (2) troublesome, and (3) failing to meet a cost-benefit trade-off in some cases. IFRS are not considered by the survey respondents as more appropriate than Spanish standards. The results of the study indicate that statement preparers’ overall views of IFRS could lead to less IFRS compliance and, therefore, lower quality financial reports than could be reached under strict IFRS application.
In June 2000, a comprehensive reform of financial reporting standards began in the European Union (EU). At that time, the European Commission published “EU Financial Reporting Strategy: the way forward”, requiring all publicly traded EU companies to prepare their consolidated statements in accordance with the International Financial Reporting Standards (IFRS). As a consequence, since 2005, all listed companies in the EU, including Spain, must apply IFRS when preparing their consolidated accounts (European Commission, 2000). This paper explores Spanish publicly traded firms’ perceptions of IFRS adoption. Past studies have looked at users’ opinions, basically auditors and financial managers, about the adoption of IFRS in a variety of countries (Deloitte and Touche, 2003, Deloitte and Touche, 2004, Jermakowicz and Gornik-Tomaszewski, 2006 and Navarro et al., 2007). This is the first empirical assessment of statement preparers’ opinions about IFRS in Spain, a code-law country with a very different cultural and institutional framework from that of Anglo-Saxons countries. This research attempts to determine if there are factors in a code-law country such as Spain that may affect IFRS application and compliance. As more countries adopt or consider adopting IFRS, questions arise concerning the extent to which IFRS adoption can improve financial reporting. Since IFRS are derived from common-law sources, it is not clear how this new regulation will work in countries with different cultures or legal origins. Ball, Kothari, and Robin (2000), Ball, Robin and Wu (2000) and Ball, Robin, and Wu (2003) suggest that the quality of financial reporting varies among countries that have adopted IFRS. La Porta, López-de-Silanes, Shleifer, and Vishny (1998) find differences in quality, even within code-law countries, related to characteristics such as shareholders’ and creditors’ protection or law enforcement. Nobes (2006) indicates that even after IFRS adoption, significant differences in international financial reporting quality remain. Therefore, previous literature provides evidence that accounting standards alone are not sufficient to achieve high-quality financial reporting. The objective of this research is to determine the factors that may influence financial statements preparers in code-law countries to apply IFRS appropriately. A questionnaire was sent to the chief accountants and financial managers of companies listed in the Spanish market (172 firms) to determine their perceptions of IFRS implementation. Our results indicate that financial statement preparers in Spain are satisfied with Spanish accounting standards. The respondents do not consider IFRS, in general, to be better than Spanish standards. We find two main factors that could explain this result. First, IFRS are considered to be significantly different from Spanish standards and IFRS are viewed as more (1) complex, (2) flexible and (3) troublesome than Spanish standards. Second, negative perceptions about IFRS stem mainly from the view that adoption costs exceed adoption benefits. Respondents indicate increased reporting costs due to higher disclosure requirements and a majority predicts an increase in their firm's earnings volatility. Although the respondents acknowledge an improvement in international comparability, only a minority of Spanish firms are traded in foreign markets.1 Although financial managers point out an increase in disclosure requirements, they do not foresee a reduction in creative accounting and perceive IFRS as less suitable than Spanish standards to limit creative accounting practices. This study makes a contribution to the accounting literature by providing insights about the transition to IFRS by companies in a code-law reporting system. The results also show that switching standards alone is not sufficient to achieve accounting harmonization (Ball, 2001 and Leuz, 2003). The study finds that acceptability and enforceability problems may prevent optimal compliance, even with standards that are considered to be of high-quality. The results should be of interest to regulators who must determine appropriate enforcement actions. The paper is organized as follows. Section 2 presents the theoretical background and reviews the relevant empirical literature. Section 3 discusses the research questions. Section 4 describes the research methodology. Section 5 analyses the empirical results and Section 6 summarizes and presents the conclusions.
نتیجه گیری انگلیسی
Although IFRS are considered high-quality standards, it is difficult to know how preparers will apply them. This study investigates the problems and possible consequences of IFRS adoption in a code-law country such as Spain. Since listed companies have been the first to apply IFRS in the EU, we survey financial statement preparers in Spain. Our results indicate a high level of knowledge about IFRS among listed companies’ preparers. These preparers, however, do not consider IFRS to be better than Spanish accounting standards. Although IFRS are considered to enhance users’ decisions-making, they also are viewed as having negative features such as complexity, flexibility, and detail. Spanish financial statement preparers are used to domestic standards that are simpler, concrete, and less extensive than IFRS. Preparers are not in favor of some of the most important changes required by IFRS, which could increase their negative perceptions of the standards. Respondents believe that IFRS adoption results in more costs than benefits and indicate that increased costs are due to disclosure requirements. They acknowledge an improvement in international comparability, although only a minority of firms is traded in foreign markets. Fewer than half the respondents believe that IFRS adoption will improve the accounting information systems in their own companies. A large majority believes IFRS will result in an increase in their firm's earnings volatility. Respondents are neutral concerning national comparability. Therefore, the future of IFRS adoption is full of lights and shadows. This study presents evidence that IFRS implementation in a code-law country will not be entirely successful. Although IFRS are seen as quality standards, preparers think IFRS may result in more disclosure as well as more creative accounting practices. Thus, we can observe acceptability problems and lack of sufficient incentives to achieve optimal IFRS compliance. It is unlikely that the issues noted above will be corrected in the next future since they depend on institutional factors that change slowly. Therefore, it is foreseeable that these problems will persist until an important change in the institutional setting takes place. We acknowledge that the survey results reflect only the views of a single manager at each company. The findings, however, should be useful to regulators, who must be aware of the need for new measures of enforcement in order to achieve suitable compliance with IFRS.