IFRS in New Zealand: effects on financial statements and ratios

Warwick J. Stent · Michael Eric Bradbury · Jill Hooks

72 citations0/0 files storedPacific Accounting Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Accounting Theory and Financial Reporting Financial Reporting and XBRL

Abstract

Purpose The purpose of this paper is to examine the financial statement impacts of adopting NZ IFRS during 2005 through 2008. Design/methodology/approach The effects of NZ IFRS on the financial statements and ratios of first‐time adopters of NZ IFRS for a stratified random sample of 56 listed companies is analysed. In total, 16 of these were early adopters and 40 of which waited until adoption of NZ IFRS became mandatory. The analysis of the financial statement impact of NZ IFRS is conducted in the context of the accounting choice literature. Findings The results show that 87 per cent of firms are affected by NZ IFRS. The median and inter‐quartile ranges indicate that for most firms the impact of NZ IFRS is small. However, the maximum and minimum values indicate the impact can be large for some entities. The impact has considerable effects on common financial ratios. Research limitations/implications The usual limitations applicable to small samples apply. Practical implications The findings may be useful to regulators and policy makers reviewing financial reporting requirements. Originality/value This study is the first to offer a comprehensive empirical analysis of the effect of adopting IFRS on financial statements in New Zealand, as well as on selected key ratios of interest to financial analysts. The data used are more recent than most IAS or IFRS studies around the world and are stratified to allow for comparison between voluntary/early adopters and mandatory/late adopters.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 72 citations exist upstream.

References

1968FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY 2008International Accounting Standards and Accounting Quality 2008Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences 2001Empirical research on accounting choice 2007Financial statement effects of adopting international accounting standards: the case of Germany 2005International Accounting Standards and Accounting Quality 1997An International Comparison of Derivatives Use

Cited by

2011Properties of net income and total comprehensive income: New Zealand evidence 2020Audit effort, materiality and audit fees: evidence from the adoption of IFRS in Australia 2015The volatility of comprehensive income and its association with market risk 2014Does transition to IFRS substantially affect key financial ratios in shareholder-oriented common law regimes? Evidence from the UK 2015Longer term audit costs of IFRS and the differential impact of implied auditor cost structures 2015The roles of book‐tax conformity and tax enforcement in regulating tax reporting behaviour following International Financial Reporting Standards adoption

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.