The Effect of Adoption of IFRSs on Earning Usefulness: An Analysis Using Relevance and Faithful Representation

• Main Authors: CHEN,CHUN-LIN, 陳俊麟
• Other Authors: Nien-Su Shih
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/bmyd4t

碩士 === 逢甲大學 === 會計學系 === 104 === Abstract This study examines whether comprehensive income and comprehensive income components after the adoption of IFRSs affect the usefulness of earnings. The study seeks two interrelated research questions that aim to assess whether IFRSs make earnings information more usefulness for decision making in the capital markets. First, it is examined whether earnings information of comprehensive income and comprehensive income components provide incremental explanatory power, by evaluating the relative ability of comprehensive income and net income to impact upon the value relevance (a proxy for earnings usefulness), predictive value(a proxy for relevance) and persistence(a proxy for faithful representation).My second research question is to examine the pricing effects of earnings predictability and persistence under IFRSs. The results show that the different of earnings usefulness after the adoption of IFRSs.