IFRS in New Zealand: Effects on financial statements and ratios

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dc.citation.issue2
dc.citation.volume22
dc.contributor.authorStent W
dc.contributor.authorBradbury M
dc.contributor.authorHooks J
dc.date.available2010
dc.date.issued2010
dc.description.abstractPurpose - The purpose of this paper is to examine the financial statement impacts of adopting NZ IFRS during 2005 through 2008. Design/methodology/approach - The effects of NZ IFRS on the financial statements and ratios of first-time adopters of NZ IFRS for a stratified random sample of 56 listed companies is analysed. In total, 16 of these were early adopters and 40 of which waited until adoption of NZ IFRS became mandatory. The analysis of the financial statement impact of NZ IFRS is conducted in the context of the accounting choice literature. Findings - The results show that 87 per cent of firms are affected by NZ IFRS. The median and inter-quartile ranges indicate that for most firms the impact of NZ IFRS is small. However, the maximum and minimum values indicate the impact can be large for some entities. The impact has considerable effects on common financial ratios. Research limitations/implications - The usual limitations applicable to small samples apply. Practical implications - The findings may be useful to regulators and policy makers reviewing financial reporting requirements. Originality/value - This study is the first to offer a comprehensive empirical analysis of the effect of adopting IFRS on financial statements in New Zealand, as well as on selected key ratios of interest to financial analysts. The data used are more recent than most IAS or IFRS studies around the world and are stratified to allow for comparison between voluntary/early adopters and mandatory/late adopters.
dc.description.confidentialFALSE
dc.format.extent92 - 107
dc.identifier.citationPacific Accounting Review, 2010, 22 (2), pp. 92 - 107
dc.identifier.doi10.1108/01140581011074494
dc.identifier.elements-id37425
dc.identifier.harvestedMassey_Dark
dc.identifier.issn0114-0582
dc.identifier.urihttps://hdl.handle.net/10179/14807
dc.publisherEmerald
dc.relation.isPartOfPacific Accounting Review
dc.subjectFinancial reporting
dc.subjectInternational standards
dc.subjectmanagement ratios
dc.subjectNew Zealand
dc.subject.anzsrc1501 Accounting, Auditing and Accountability
dc.titleIFRS in New Zealand: Effects on financial statements and ratios
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Accountancy
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