Title: Credit rating agencies analysing IFRS data: a sample of rated companies and their reported information

Authors: Jean-Guy Degos; Oussama Ben Hmiden; Jérémie Aboiron

Addresses: IRGO Research Centre, University of Bordeaux, 35, avenue Abadie, 33072 Bordeaux, France ' ESSCA School of Management, 1, rue Lakanal, P.O. Box 40348, 49003 Angers, France ' Aboiron & Associates, 37, rue des Mathurins, 75008 Paris, France

Abstract: This paper explores the size of the differences between reported amounts in accordance with international financial reporting standards (IFRS) and standard accounting adjustments made by the credit rating agencies. From an analysis of French rated companies, we make a comparison between the values obtained through credit rating agencies adjustments and those reported before and after the implementation of IFRS. Our comparability index revealed that credit rating agencies make significant adjustments to reported information. Indeed, considerable differences can be found between the information reported according to IFRS and that adjusted for the main criteria used by the rating agencies, i.e., debt, liquidity and profitability.

Keywords: credit rating agencies; CRA; accounting adjustments; International Financial Reporting Standards; IFRS data; data analysis; comparability index; debt; liquidity; profitability.

DOI: 10.1504/IJEA.2015.068979

International Journal of Economics and Accounting, 2015 Vol.6 No.1, pp.1 - 14

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 23 Apr 2015 *

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