International Journal of Accounting and Taxation

Does IFRS Adoption Influence Quality of Reporting?: An Empirical Evidence from Large Canadian Banks
Dr. Yusuf Mohammed Nulla

Abstract
This study is a comparative study between the Canadian GAAP and IFRS, to understand the extent and nature of impact on financial reporting in the nine largest Canadian banks. The quantitative research method is adopted for this empirical study. The research question of this research study is: Does IFRS adoption in the Canadian financial institutions improve financial reporting quality?. This research finds that under IFRS, increase in earnings quality due to increase in value relevance (earnings influence to market price); increase in persistency and predictability in earnings and cash flows; and increase in earnings to shareholder value. However, it also finds that, decrease in accruals and timeliness loss of recognition (reduce in income smoothing), and decrease in the accounting valuation usefulness (earnings to book value per share).

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