Report

The effect of company size, profitability and the introduction of IFRS on the relevance of financial reports for investor decision making

M Davern, Nikole Gyles, Dean Hanlon, Matthew Pinnuck

CPA Australia | Published : 2018

Abstract

In this report, we examine the effect of company size, profitability and the introduction of International Financial Reporting Standards (IFRS) on the relevance of financial reporting for investor decision making in Australia. Conjecture has surrounded not only the relevance of financial reporting to investors, but also whether the traditional financial reporting model enables all companies to generate equally-useful information. Moreover, there is conflicting evidence as to whether Australia’s adoption of IFRS has enhanced the relevance of financial reports. In response to such conjecture and inconclusive findings, we examine whether the relevance of financial reporting to equity investors ..

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