The Impact of IFRS Adoption on Quality of Accounting Information: Evidence from Sri Lanka
The aim of this study is to examine the effect of International Financial Reporting Standards (IFRS) adoption on quality of accounting information in terms of value relevance of listed manufacturing companies in Colombo Stock Exchange. At present, countries are mandated or permitted to apply IFRS in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Faculty of Commerce & Manangement Studies, University of Kelaniya
2019-07-01
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| Series: | Kelaniya Journal of Management |
| Online Access: | http://doi.org/10.4038/kjm.v8i1.7566 |
| Summary: | The aim of this study is to examine the effect of International Financial Reporting Standards (IFRS) adoption on quality of accounting information in terms of value relevance of listed manufacturing companies in Colombo Stock Exchange. At present, countries are mandated or permitted to apply IFRS in preparation of their financial statements. There are many studies available on IFRS adoption internationally. However, there is no clear evidence that IFRS adoption enhances the quality of accounting information pertaining to Sri Lankan context. This study employs 29 listed manufacturing companies with both pre-IFRS (2009-2011) and post-IFRS (2013-2015) information. Data were analyzed using multiple regression method. Results showed that value relevance of accounting information has not significantly improved in the post-IFRS period than the pre-IFRS period. Further studies are encouraged to conduct on investigating the impact of IFRS adoption on the quality of accounting information by expanding the sample size. |
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| ISSN: | 2279-1469 2448-9298 |