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What accounting standards were the cause of enforcement actions following IFRS adoption?
Author(s) -
Bradbury Michael E.,
Scott Tom
Publication year - 2021
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12661
Subject(s) - accounting , enforcement , business , international financial reporting standards , materiality (auditing) , commission , financial statement , audit , accounting standard , financial accounting , accounting information system , finance , political science , law , philosophy , aesthetics
We provide descriptive evidence on enforcement actions (i.e., regulatory enquiries and their outcomes) following the adoption of International Financial Reporting Standards (IFRS) in New Zealand. The most common enquiries made by the Securities Commission of New Zealand post‐IFRS adoption period (2007–2010) relate to IFRS transition, financial statement presentation, financial instrument disclosures and related party disclosures. We conclude that the perspective of public enforcement (securities regulators) differs from that of private enforcement (auditors) and focuses on disclosure issues. We discuss the implications of this result for current International Accounting Standards Board (IASB) issues, such as materiality and professional judgment in principles‐based standards.