The effect of the new revenue recognition principle (IFRS 15) on financial statement comparability: Evidence from Korea

IF 3.3 Q1 BUSINESS, FINANCE Journal of International Accounting Auditing and Taxation Pub Date : 2024-01-29 DOI:10.1016/j.intaccaudtax.2024.100601

Woo Jae Lee , Seung Uk Choi

{"title":"The effect of the new revenue recognition principle (IFRS 15) on financial statement comparability: Evidence from Korea","authors":"Woo Jae Lee , Seung Uk Choi","doi":"10.1016/j.intaccaudtax.2024.100601","DOIUrl":null,"url":null,"abstract":"<div><p>This study investigates the initial impact of International Financial Reporting Standards (IFRS) 15 by comparing the financial statement comparability of the effective years of its implementation with those of the pre-IFRS 15 periods. Given that private firms are exempt from the IFRS 15 amendment, we use them as the control group for public firms. Specifically, we use Korean firms from 2015 to 2020 and employ a difference-in-differences approach. This study finds an increase in financial statement comparability for public firms after the IFRS 15 application relative to the change of private firms that are not subject to the IFRS 15. We interpret that the enhancement in financial statement comparability is caused by the following two aspects of IFRS 15: discretion reduction effect and harmonization of multiple standards effect. Furthermore, an increase in comparability is greater for firms that are clients of industry-specialist auditors and those that operate in less-competitive industries, unlike their counterparts. We also find that discretionary revenues are lower in the post-IFRS 15 period than in the pre-IFRS 15 period. Overall, the results of this study suggest that IFRS 15 can deliver the outcomes aimed for by regulators, at least during its initial implementation.</p></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":null,"pages":null},"PeriodicalIF":3.3000,"publicationDate":"2024-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Accounting Auditing and Taxation","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1061951824000077","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

This study investigates the initial impact of International Financial Reporting Standards (IFRS) 15 by comparing the financial statement comparability of the effective years of its implementation with those of the pre-IFRS 15 periods. Given that private firms are exempt from the IFRS 15 amendment, we use them as the control group for public firms. Specifically, we use Korean firms from 2015 to 2020 and employ a difference-in-differences approach. This study finds an increase in financial statement comparability for public firms after the IFRS 15 application relative to the change of private firms that are not subject to the IFRS 15. We interpret that the enhancement in financial statement comparability is caused by the following two aspects of IFRS 15: discretion reduction effect and harmonization of multiple standards effect. Furthermore, an increase in comparability is greater for firms that are clients of industry-specialist auditors and those that operate in less-competitive industries, unlike their counterparts. We also find that discretionary revenues are lower in the post-IFRS 15 period than in the pre-IFRS 15 period. Overall, the results of this study suggest that IFRS 15 can deliver the outcomes aimed for by regulators, at least during its initial implementation.

查看原文

微信好友朋友圈 QQ好友复制链接

本刊更多论文

新收入确认原则（IFRS 15）对财务报表可比性的影响：来自韩国的证据

本研究通过比较《国际财务报告准则》第 15 号实施有效年份与《国际财务报告准则》第 15 号实施前年份的财务报表可比性，调查《国际财务报告准则》第 15 号的初步影响。鉴于私营企业不受《国际财务报告准则第 15 号》修正案的约束，我们将其作为上市公司的对照组。具体而言，我们以 2015 年至 2020 年的韩国企业为研究对象，并采用了差分法。本研究发现，相对于不受《国际财务报告准则第 15 号》约束的私营企业的变化，《国际财务报告准则第 15 号》应用后，上市公司的财务报表可比性有所提高。我们解释说，财务报表可比性的提高是由《国际财务报告准则第 15 号》的以下两个方面造成的：减少自由裁量权效应和多准则协调效应。此外，与同类企业不同的是，行业专业审计师的客户和在竞争较少行业经营的企业的可比性提高幅度更大。我们还发现，后《国际财务报告准则第 15 号》时期的可支配收入低于前《国际财务报告准则第 15 号》时期。总体而言，本研究的结果表明，《国际财务报告准则第 15 号》至少在实施初期能够实现监管机构的目标。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文去求助

来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.