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Full IFRS and IFRS for SMEs Adoption by Private Firms

Empirical Evidence on Country Level

by Maximilian Saucke (Author)
©2015 Thesis XXIX, 331 Pages

Summary

The issuance of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) in July 2009 has mixed up the bipolar financial reporting landscape between Local Generally Accepted Accounting Principles (GAAPs) and Full IFRS by adding a third dimension to international GAAP choice. The study examines the characteristics and determinants of Full IFRS and IFRS for SMEs adoption by private firms in 110 countries. It finds empirical evidence for the continued existence of local versions of IFRS and the worldwide emergence of a two standard system. The findings also suggest that while Full IFRS adoption was mainly driven by network effects and political pressures, countries adopt the IFRS for SMEs notably due to cost-benefit considerations.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • Preface
  • Acknowledgement
  • About the Author
  • About the Book
  • This eBook can be cited
  • Contents summary
  • Contents
  • Index of figures
  • Index of tables
  • Index of formulas
  • Index of abbreviations
  • Index of symbols
  • 1 Foundation
  • 1.1 Introduction
  • 1.1.1 Motivation
  • 1.1.2 Research questions
  • 1.1.3 Outline
  • 1.2 Scientific research strategy
  • 1.2.1 Science and philosophy of science
  • 1.2.2 Scientific positioning of the study
  • 1.3 Financial reporting of private firms
  • 1.3.1 Defining private firms
  • 1.3.1.1 Quantitative definitions
  • 1.3.1.2 Qualitative definitions
  • 1.3.1.3 Definition used in this study
  • 1.3.2 Differential reporting
  • 1.3.2.1 Big GAAP vs. little GAAP debate
  • 1.3.2.2 Different users and users’ needs
  • 1.3.2.3 Stewardship vs. decision-usefulness
  • 1.3.2.4 Examples of differential reporting
  • 1.4 International accounting harmonization
  • 1.4.1 Definitions and fundamentals
  • 1.4.2 Early attempts of harmonization
  • 1.4.3 Development of Full IFRS
  • 1.4.4 Development of IFRS for SMEs
  • 1.5 Field of research
  • 1.5.1 International comparative financial accounting research
  • 1.5.2 International accounting harmonization research
  • 1.6 Prior research
  • 1.6.1 Overview
  • 1.6.2 Descriptive country level studies on GAAP adoption
  • 1.6.2.1 Full IFRS
  • 1.6.2.1.1 National GAAP’s compliance with Full IFRS
  • 1.6.2.1.2 Full IFRS implementation as a whole
  • 1.6.2.2 IFRS for SMEs
  • 1.6.3 Explanatory country level studies on GAAP adoption
  • 1.6.3.1 Full IFRS
  • 1.6.3.1.1 Economic factors
  • 1.6.3.1.2 Political factors
  • 1.6.3.1.3 Network effects
  • 1.6.3.1.4 National culture
  • 1.6.3.2 IFRS for SMEs
  • 1.6.4 Limitations and implications for this study
  • 2 Theory and hypotheses development
  • 2.1 Theoretical foundation
  • 2.1.1 Economic theory of networks
  • 2.1.2 Institutional theory of isomorphism
  • 2.1.3 Integration of theoretical perspectives
  • 2.2 Hypotheses development
  • 2.2.1 Describing Full IFRS and IFRS for SMEs adoption
  • 2.2.2 Explaining Full IFRS and IFRS for SMEs adoption
  • 2.2.2.1 Net economic benefits
  • 2.2.2.1.1 Perceived quality of accounting standards
  • 2.2.2.1.2 Local GAAP
  • 2.2.2.1.3 Local Full IFRS
  • 2.2.2.1.4 Full IFRS adoption for listed firms
  • 2.2.2.1.5 Full IFRS adoption for private firms
  • 2.2.2.2 Network effects
  • 2.2.2.3 Political pressures
  • 2.2.2.3.1 Economic power
  • 2.2.2.3.2 Political power
  • 2.2.2.3.3 Import dependency
  • 2.2.2.3.4 Pressures from supranational institutions
  • 2.2.3 Refined conceptual framework
  • 3 Characteristics of Full IFRS and IFRS for SMEs adoption
  • 3.1 Research design
  • 3.1.1 Data collection and sample
  • 3.1.1.1 Sample selection procedure
  • 3.1.1.2 Characteristics of the sample
  • 3.1.2 Conceptual foundation
  • 3.1.2.1 Classifying accounting systems
  • 3.1.2.2 Type of adoption
  • 3.1.2.3 Scope of adoption
  • 3.2 Empirical results
  • 3.2.1 North America
  • 3.2.1.1 Time series analysis
  • 3.2.1.2 Cross-sectional analysis
  • 3.2.2 Central America & Caribbean
  • 3.2.2.1 Time series analysis
  • 3.2.2.2 Cross-sectional analysis
  • 3.2.3 South America
  • 3.2.3.1 Time series analysis
  • 3.2.3.2 Cross-sectional analysis
  • 3.2.4 European Union
  • 3.2.4.1 Time series analysis
  • 3.2.4.2 Cross-sectional analysis
  • 3.2.5 Southeast Europe
  • 3.2.5.1 Time series analysis
  • 3.2.5.2 Cross-sectional analysis
  • 3.2.6 Africa
  • 3.2.6.1 Time series analysis
  • 3.2.6.2 Cross-sectional analysis
  • 3.2.7 Middle East
  • 3.2.7.1 Time series analysis
  • 3.2.7.2 Cross-sectional analysis
  • 3.2.8 Asia
  • 3.2.8.1 Time series analysis
  • 3.2.8.2 Cross-sectional analysis
  • 3.2.9 Australia & Oceania
  • 3.2.9.1 Time series analysis
  • 3.2.9.2 Cross-sectional analysis
  • 3.3 Discussion
  • 3.3.1 Time series analysis
  • 3.3.2 Cross-sectional analysis
  • 4 Determinants of Full IFRS and IFRS for SMEs adoption
  • 4.1 Research design
  • 4.1.1 Descriptive analysis
  • 4.1.2 Explanatory analysis
  • 4.1.2.1 Logistic regression model
  • 4.1.2.2 Variables
  • 4.1.2.2.1 Dependent variables
  • 4.1.2.2.2 Independent variables
  • 4.2 Empirical results
  • 4.2.1 Full IFRS adoption by 2008
  • 4.2.1.1 Descriptive statistics
  • 4.2.1.2 Correlation analysis
  • 4.2.1.3 Multivariate logistic regression
  • 4.2.2 Full IFRS adoption by 2014
  • 4.2.2.1 Descriptive statistics
  • 4.2.2.2 Correlation analysis
  • 4.2.2.3 Multivariate logistic regression
  • 4.2.3 IFRS for SMEs adoption by 2014
  • 4.2.3.1 Descriptive statistics
  • 4.2.3.2 Correlation analysis
  • 4.2.3.3 Multivariate logistic regression
  • 4.2.4 Robustness tests
  • 4.3 Discussion
  • 5 Conclusions
  • 5.1 Main findings and implications
  • 5.2 Limitations
  • 5.3 Perspectives
  • Appendix
  • References

Index of figures

Index of tables

Details

Pages
XXIX, 331
Year
2015
ISBN (PDF)
9783653055313
ISBN (ePUB)
9783653967128
ISBN (MOBI)
9783653967111
ISBN (Hardcover)
9783631662984
DOI
10.3726/978-3-653-05531-3
Language
English
Publication date
2015 (April)
Keywords
Determinanten der IFRS Anwendung De jure Harmonisierung Komparative Rechnungslegungsforschung
Published
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2015. XXIX, 331 pp., 84 tables, 58 graphs

Biographical notes

Maximilian Saucke (Author)

Maximilian Saucke studied Business Administration at the University of Bayreuth (Germany) and EDHEC Business School (France). He worked as a research assistant and lecturer for the Chair of International Accounting at the University of Münster (Germany).

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Title: Full IFRS and IFRS for SMEs Adoption by Private Firms
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