Journal article

IFRS adoption and accounting quality: A review

Naomi S Soderstrom, Kevin Jialin Sun

EUROPEAN ACCOUNTING REVIEW | ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD | Published : 2007

Abstract

In 2002, the European Union (EU) Parliament passed a regulation that requires consolidated and simple accounts for all companies listed in the EU to use International Financial Reporting Standards (IFRS) for fiscal years starting after 1 January 2005. This change in accounting systems will have a large impact on the information environment for EU companies. This paper provides a review of the literature on adoption of different Generally Accepted Accounting Principles (GAAP). We thus provide background and guidance for researchers studying the change in accounting quality following widespread IFRS adoption in the EU. We argue that cross-country differences in accounting quality are likely to..

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University of Melbourne Researchers