Authors: Chiara Saccon; Ştefana Maria Dima
Addresses: Department of Management, Ca' Foscari University of Venice, Cannaregio 873, Fondamenta San Giobbe, 30121 Venice, Italy ' Faculty of Economics, Western University Vasile Goldis of Arad, 15, Mihai Eminescu Street, 310086 Arad, Romania
Abstract: The core argument of this paper is that International Financial Reporting Standards (IFRSs) are designed to provide relevant financial information to a wide range of users. The higher the quality of the information supplied by financial reporting, the better the outcomes of the decision-making process of the participants on capital markets and the lower the information asymmetry within the markets. The working hypothesis is that the changes in financial reporting for joint ventures can reduce information asymmetry issues. Our approach takes into consideration the recently issued IFRS 11, which is of critical importance to the nature and quality of the financial information transmitted by the issuers to the market. The expected outcome of such an analysis resides in the idea that these changes in financial reporting reflect the role played by the international joint ventures in global markets and in the entire economic system.
Keywords: International Financial Reporting Standards; IFRSs; international joint ventures; capital markets; IAS 31; IFRS 11; equity method; proportional consolidation; financial information; information quality; outcomes; decision making; information asymmetry; global markets; international markets; globalisation; internationalisation.
International Journal of Economics and Business Research, 2015 Vol.9 No.2, pp.158 - 169
Published online: 07 Feb 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article