The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK
International Financial Reporting Standards (IFRS) were initially adopted by the European Union in 2005 in order to share the benefits provided by globalization in 2005 and 2006. Various criteria were first implemented on a voluntary basis in these countries before becoming required. Therefore, this...
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| Format: | Article |
| Language: | English |
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Tishk International University
2021-11-01
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| Series: | Eurasian Journal of Management & Social Sciences |
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| Online Access: | https://ejmss.tiu.edu.iq/index.php/ejmss/article/view/45 |
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| author | Kawa Wali |
| author_facet | Kawa Wali |
| author_sort | Kawa Wali |
| collection | DOAJ |
| description | International Financial Reporting Standards (IFRS) were initially adopted by the European Union in 2005 in order to share the benefits provided by globalization in 2005 and 2006. Various criteria were first implemented on a voluntary basis in these countries before becoming required. Therefore, this paper studied the influence of applying IFRS on the importance of the value of accounting information to Dutch and UK companies. The study was conducted before (2005) and after (2005) analyzing IFRS for 54 Dutch companies-years and 84 UK companies-years listed on the two countries’ exchanges.
The study obtained data on stock prices, dividends and book value of shares from published annual reports of companies from both countries that cite and manage cash assets. Using a regression model, specifically, the study concluded that EPS before and after the implementation of IFRS had a positive impact on the stock price and thus could be the basis for market decisions. Post-IFRS financial information is relevant to a greater value than the pre IFRS information. Moreover, the study indicated that there is an increase in the relevance of value after the implementation of IFRS in the Netherlands, although this increase is modest for the United Kingdom. |
| format | Article |
| id | doaj-art-3f5f508b004c488fb7252db640cea566 |
| institution | Kabale University |
| issn | 2708-177X 2708-034X |
| language | English |
| publishDate | 2021-11-01 |
| publisher | Tishk International University |
| record_format | Article |
| series | Eurasian Journal of Management & Social Sciences |
| spelling | doaj-art-3f5f508b004c488fb7252db640cea5662025-08-20T03:56:41ZengTishk International UniversityEurasian Journal of Management & Social Sciences2708-177X2708-034X2021-11-0123314210.23918/ejmss.V2i3p3146The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UKKawa Wali0Salahaddin University-Erbil, Kurdistan Region, IraqInternational Financial Reporting Standards (IFRS) were initially adopted by the European Union in 2005 in order to share the benefits provided by globalization in 2005 and 2006. Various criteria were first implemented on a voluntary basis in these countries before becoming required. Therefore, this paper studied the influence of applying IFRS on the importance of the value of accounting information to Dutch and UK companies. The study was conducted before (2005) and after (2005) analyzing IFRS for 54 Dutch companies-years and 84 UK companies-years listed on the two countries’ exchanges. The study obtained data on stock prices, dividends and book value of shares from published annual reports of companies from both countries that cite and manage cash assets. Using a regression model, specifically, the study concluded that EPS before and after the implementation of IFRS had a positive impact on the stock price and thus could be the basis for market decisions. Post-IFRS financial information is relevant to a greater value than the pre IFRS information. Moreover, the study indicated that there is an increase in the relevance of value after the implementation of IFRS in the Netherlands, although this increase is modest for the United Kingdom.https://ejmss.tiu.edu.iq/index.php/ejmss/article/view/45ifrsvalue relevanceaccounting informationdutchuk companies |
| spellingShingle | Kawa Wali The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK Eurasian Journal of Management & Social Sciences ifrs value relevance accounting information dutch uk companies |
| title | The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK |
| title_full | The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK |
| title_fullStr | The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK |
| title_full_unstemmed | The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK |
| title_short | The Value Relevance of Accounting Information Based on IFRS in the Netherlands and the UK |
| title_sort | value relevance of accounting information based on ifrs in the netherlands and the uk |
| topic | ifrs value relevance accounting information dutch uk companies |
| url | https://ejmss.tiu.edu.iq/index.php/ejmss/article/view/45 |
| work_keys_str_mv | AT kawawali thevaluerelevanceofaccountinginformationbasedonifrsinthenetherlandsandtheuk AT kawawali valuerelevanceofaccountinginformationbasedonifrsinthenetherlandsandtheuk |