Impact of IFRS in New Zealand on Accounts and Earnings Quality

What is it about?

New Zealand entities started preparing financial statements using IFRS since 2007, with some entities early-adopting IFRS since 2005. The primary rationale for the adoption of IFRS across the globe was an improvement in reporting quality. Being an Anglo-American country whose pre-IFRS GAAP was similar to IFRS, the impact of IFRS on reporting quality of New Zealand entities is not clear a priori. In this study, we investigate the impact of IFRS adoption on the financial statement accounts and accrual quality of New Zealand entities.

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