Authors: Michela Cordazzo
Addresses: School of Economics and Management, Free University of Bozen-Bolzano, Piazza Università 1, 39100 Bolzano, Italy
Abstract: The purpose of this paper is to study the impact on company financial reporting of IFRS mandatory transition in Italy and Germany. The study investigates the global and partial impact of each individual accounting adjustment that occurs on company financial reporting during IFRS transition. The analysis of such impacts is conducted in order to highlight how Italian and German companies have experimented IFRS adoption, and whether there are differences and similarities between Italian and German companies by moving to an international accounting regime. The results show that the global effect on equity is not significant for both Italian and German companies, while that on net income shows a stronger impact on Italian than on German ones. With regard to the individual accounting adjustments, the most significant partial impacts are those concerning employee benefits, provisions, and intangible assets for both Italian and German companies.
Keywords: IFRS transition; financial reporting; comparison; measurement; Germany; Italy; International Financial Reporting Standards; accounting adjustment; employee benefits; provisions; intangible assets.
International Journal of Business Performance Management, 2013 Vol.14 No.1, pp.1 - 18
Available online: 19 Nov 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article