The Impact of Adoption of International Financial Reporting Standards on Accounting Conservatism, Earnings Management, and Information Transparency

Sadi, Jahangir; Jafari, Ali; Nasl Mousavi, Seyed Hossein

doi:10.22034/iaar.2022.156651

The Impact of Adoption of International Financial Reporting Standards on Accounting Conservatism, Earnings Management, and Information Transparency

Document Type : Original Article

Authors

jahangir sadi ¹

Ali Jafari ²

Seyed Hossein Nasl Mousavi ²

¹ Ph.D Student, Department Of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshar, Iran

² Assistant Prof, Department of Accounting, Faculty of Humanities, Islamic Azad University, Ghaemshahr branch, Iran

10.22034/iaar.2022.156651

Abstract

In today's world we are witnessing increasing efforts to harmonize accounting standards at the international level. The growth of international trade and the increasing number of multinational joint ventures in different countries has doubled the need for relevance, timeliness and comparability of financial information and reports. The main purpose of this study is to investigate the effect of acceptance of International Financial Reporting Standards on the quality of accounting information from the perspective of users of financial statements in Iran. The statistical population of this research includes 234 people working in the accounting profession, consultants and capital market activists and users of companies' financial statements, which was conducted in 1399. Data analysis method is factor analysis method. Also, structural equation testing was performed using SPSS and smart pls software. Research findings show that the application of international financial reporting standards increases the level of conservatism, reduces profit management, reduces information asymmetry and increases the transparency of information provided and improves the overall quality of accounting information.

Keywords

Adoption of International Financial Reporting Standards

Accounting Conservatism

Earnings Management

Information Asymmetry

Information Transparency