Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Is Compliance with International Accounting Standards Beneficial?

Is Compliance with International Accounting Standards Beneficial?

Chatham, Michael

Paperback

Business General

ISBN10: 3639036611
ISBN13: 9783639036619
Publisher: Blues Kids Of Amer
Published: Aug 27 2008
Pages: 120
Weight: 0.38
Height: 0.25 Width: 6.00 Depth: 9.00
Language: English
This study provides evidence regarding the benefits of complying with International Accounting Standards (IAS), now known as International Financial Reporting Standards (IFRS). Companies expend considerable resources on financial reporting. These resources may or may not be recouped through benefits such as lower costs of capital. Using three proxies for information asymmetry, which has been shown to impact a firm's cost of capital, this study shows that the extent of compliance with IAS apparently does not impact these proxies. A related investigation of the factors associated with IAS compliance for this sample of companies suggests that compliance seems to be related primarily to the country of domicile. Firms from Switzerland comply with IAS to a greater degree than firms from France and Sweden. When an auditor confirms the use of IAS, it is also a strong indicator of relatively higher levels of IAS compliance. Overall, however, the results of this study place in question the motives for a firm to incur additional financial reporting costs in an attempt to comply with IAS.

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