Financial Statment Effect of Adopting International Accounting Standars: The Case of Germany

by: Mingyi Hung and K.R. Subramanyam

This study investigates the effects of adopting International Accounting Standards (IAS) on financial statements and their value relevance for a sample of German firms during 1998 – 2002. By implementing an innovative research design we compare accounting numbers reported under German accounting rules (HGB) with those under IAS for the same set of firm-years, and document how IAS adoption changes key financial measures and the value relevance of financial statement information. While HGB is stakeholder-oriented and commonly viewed as a historical cost accounting model that emphasizes income smoothing, IAS is shareholder-oriented and generaly percieved as a fair-value accounting model that emphasizes balance sheet valuation. Consistent with these perceptions, we find that total assets and bok value of equity, as well as variablity of book value and net income, are significantly higher under IAS than HGB. In addition, we find that book value (net income) plays a greater (lesser) valuation role under IAS than under HGB. Finally, we find that while the IAS adjustments to book value are generally value relevant, the adjustments to income are generally value irrelevant. Our evidance provides new insights into the accounting differences between stakeholder-oriented and shareholder-oriented accounting systems and sheds light on the financial statement and valuation implications of adopting IAS in stakeholder-oriented economies, an issue that particularly important in the upcoming adoption of IAS by the European Community.

Artikel Lengkap dapat didownload disini -> Financial Statement Effect of Adopting IAS

Ulasan Artikel dapat didownload disini -> Ulasan Artikel Financial Statement Effect of Adopting IAS


About Luciana Spica Almilia

Peneliti dan Dosen Tetap Jurusan Akuntansi (STIE Perbanas Surabaya)
This entry was posted in Artikel Akuntansi Internasional. Bookmark the permalink.

One Response to Financial Statment Effect of Adopting International Accounting Standars: The Case of Germany

  1. onie says:

    ty lg boleh..??
    Ada pendapat yg mgtkan bhw tdk ada hukum internasional efektif yg mengatur peruh multinasional& hal tsb mbt mereka memiliki kebebasan &keistimewaan yg bsr. Sebenarnya pengaruh apa sih yg ditimbulkan bagi akuntansi internas dimasa depan ..???

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