Title: Large Canadian companies and SMEs in regards to international accounting standards (IFRS): results of an empirical study

Authors: Donatien Avelé; Marc Niyomahirwe

Addresses: Faculté d'administration, Université de Moncton, Moncton (Nouveau-Brunswick) E1A 3E9, Canada ' Faculty of Business Administration, Adventist University of Central Africa, Kigali, Rwanda, Africa

Abstract: This study aims at examining the structural and behavioural contingency factors, as well as the characteristics of accounting information relating to the application of international accounting standards for large Canadian companies and SMEs since Canada's transition to reporting under IFRS in January 2011. The literature review has allowed us to develop a conceptual model and to provide a rationale for the direct links established between these new variables. The empirical study was conducted with New Brunswick companies. A total of 94 companies were surveyed. In addition, the quantitative method was used in order to test cause and effect relationships as part of our conceptual model. The findings show that the structural and behavioural contingency factors have a statistically significant direct effect on the application of international accounting standards. Finally, these results also reveal that the characteristics of the accounting information quality have a direct effect on the presentation of financial statements in accordance with the IFRS's standards.

Keywords: structural contingency; behavioural contingency; financial information quality; IFRS; International Financial Reporting Standards; large firms; Canada; SMEs; small and medium-sized enterprises; international accounting standards; accounting information; conceptual models; cause and effect relationships; financial statements.

DOI: 10.1504/IJEA.2016.10004049

International Journal of Economics and Accounting, 2016 Vol.7 No.4, pp.291 - 308

Received: 21 May 2016
Accepted: 04 Jun 2016

Published online: 21 Mar 2017 *

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