The IFRS and Accounting Quality in Transitional Economy: A Case of Russia
Speaker
Abstract
| Using a sample of Russian listed firms during 1998 through 2006, we examine whether IFRS financial reports of Russian listed firms result in a better accounting quality than the financial reports of Russian listed firms prepared in accordance with Russian accounting Standards (RAS). Our motivation to use the Russian data is due to the following reasons: Russia offers unique and transitional environment and represents a growing market which has a significant impact on the world economy. By using the Russian data we contribute to the research on the impact of IFRS on quality of accounting information internationally. For the purpose of the study we use the methodology suggested by Barth et al. (2008) based on earnings smoothing metrics and managing towards small positive earnings. Furthermore, we investigate value relevance of book value and income under IFRS and RAS. The evidence suggests that the use of IFRS results in higher accounting quality than the use of RAS. |
| Contact information: |
| Paolo Perego |
