[en] The consistent application of IFRS is a concern for the different users of financial statements. In this context this study aims to investigate the impact exercised by the enforcement of accounting standards and the financial crisis on the consistent application of IAS 36 `impairment of assets¿. Listed companies from17 European countries applying IFRS are selected. Two groups of countries are selected based on government indicators namely rule of law, control of corruption, regulatory quality, and government effectiveness. Enforcement of accounting standards is determined from a survey addressed to the institutional oversights bodies that supervise and enforce accounting standards applications in each country. We find that the enforcement of accounting standards has decreased the impairment of assets registrations. But this observation appears to be true only in high government indicators countries. In these same countries the financial crisis has a positive impact on the impairment of assets magnitude.
Disciplines :
Accounting & auditing
Author, co-author :
Yammine, Mira ; Université de Liège - ULiège > Doct. sc. écon. & gest. (sc. gestion - Bologne)
Olivier, Henri ; Université de Liège - ULiège > HEC - École de gestion de l'ULiège > HEC-Ecole de gestion
Language :
English
Title :
Enforcement of accounting standards, financial crisis, and their impact on impairment of non financial assets
Publication date :
24 April 2014
Event name :
18th Western Hemispheric Trade Conference
Event organizer :
International Trade Journal
Event place :
Laredo, United States
Event date :
from 24-4-2014 to 25-4-2014
Audience :
International
References of the abstract :
The consistent application of IFRS is a concern for the different users of financial statements. In this context this study aims to investigate the impact exercised by the enforcement of accounting standards and the financial crisis on the consistent application of IAS 36 `impairment of assets¿. Listed companies from17 European countries applying IFRS are selected. Two groups of countries are selected based on government indicators namely rule of law, control of corruption, regulatory quality, and government effectiveness. Enforcement of accounting standards is determined from a survey addressed to the institutional oversights bodies that supervise and enforce accounting standards applications in each country. We find that the enforcement of accounting standards has decreased the impairment of assets registrations. But this observation appears to be true only in high government indicators countries. In these same countries the financial crisis has a positive impact on the impairment of assets magnitude.
