Cotter, Julie and Tarca, Ann and Wee, Marvin (2012) IFRS adoption and analysts' earnings forecasts: Australian evidence. Accounting and Finance, 52 (2). pp. 395-419. ISSN 0810-5391
This is the latest version of this item.
We study 145 large listed Australian firms to explore the impact of IFRS adoption on the properties of analysts’ forecasts and the role of firm disclosure about IFRS impact. We find that analyst forecast accuracy improves and there is no significant change in dispersion in the adoption year, suggesting that analysts coped effectively with transition to IFRS. However, we do not observe the expected relationship between firms’ IFRS impact disclosures in their financial statements issued at the end of the transition year with forecast error and dispersion in the adoption year. The results question the timeliness and usefulness of financial statement disclosure, even in a setting where disclosure was mandated by accounting standards (AASB 1047 and AASB 1) and firms had strong incentives to provide information to analysts.
|Item Type:||Article (Commonwealth Reporting Category C)|
|Additional Information:||Article first published online : 24 Nov 2010. Permanent restricted access to published version due to publisher copyright policy.|
|Uncontrolled Keywords:||International Financial Reporting Standards (IFRS); analysts forecasts error and dispersion; AASB 1047 and AASB 101 IFRS transition disclosure|
|Depositing User:||Prof. Julie Cotter|
|Date Deposited:||27 Apr 2012 07:54|
|Last Modified:||03 Jul 2013 01:10|
Available Versions of this Item
- IFRS adoption and analysts' earnings forecasts: Australian evidence. (deposited 27 Apr 2012 07:54) [Currently Displayed]
Actions (login required)
|Archive Repository Staff Only|