Title: Information content of IFRS versus domestic accounting standards: evidence from mandatory IFRS adoption in Israel
Authors: Ariel Markelevich; Lewis Shaw; Hagit Weihs
Addresses: Department of Accounting, Sawyer Business School, Suffolk University, Boston, MA 02108, USA ' Department of Accounting, Sawyer Business School, Suffolk University, Boston, MA 02108, USA ' International Business School, Brandeis University, Waltham, MA 02454, USA
Abstract: Beginning in 2008, most Israeli public companies were required to adopt international financial reporting standards (IFRS). Previously, Israel followed its own set of financial reporting standards - Israeli generally accepted accounting principles (GAAP). This paper examines the impact of the conversion from Israeli GAAP to IFRS on the reporting of financial performance of over six hundred Israeli public companies. Results of this study contribute to the discussion on the impact of mandatory IFRS adoption and have potential implications for other countries currently considering conversion from legacy GAAP to IFRS. In Israel's case, the conversion, done to facilitate foreign investment in Israeli companies, had little or no impact on financial results or value relevance of accounting information.
Keywords: mandatory adoption; value relevance; International Financial Reporting Standards; domestic GAAP; information content; IFRS adoption; domestic accounting standards; Israel; foreign investment; financial results; value relevance; accounting information.
International Journal of Accounting, Auditing and Performance Evaluation, 2016 Vol.12 No.2, pp.167 - 211
Received: 21 Jan 2015
Accepted: 16 Jun 2015
Published online: 15 Mar 2016 *