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Disclosure of the impacts of adopting Australian equivalents of International Financial Reporting Standards
Author(s) -
Palmer Philip D.
Publication year - 2008
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/j.1467-629x.2008.00262.x
Subject(s) - accounting , leverage (statistics) , business , paragraph , audit , sample (material) , limiting , quality (philosophy) , mechanical engineering , philosophy , chemistry , epistemology , chromatography , machine learning , world wide web , computer science , engineering
This study investigates two disclosure variables ( Extent and Quality ) in relation to compliance with paragraph 4.1 (b) of AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards . Using a sample of 150 Australian listed firms, I find that the extent and quality of disclosure is influenced by firm size, leverage and auditor firm size, with the latter variable being the most significant. In general, the results suggest that many companies might have relied on sample disclosures provided by their auditors, perhaps limiting both quality and intent. Additionally, the ultimate usefulness of broad and imprecise standards might be questionable. Smaller companies might also require more guidance and assistance with their preparation for the adoption.