The Value Relevance of Accounting Numbers in Presence of the Equity Method Before and After IFRS 11: Evidence from France

IF 4.6 Q1 BUSINESS, FINANCE Accounting in Europe Pub Date : 2023-04-25 DOI:10.1080/17449480.2023.2192235
Frédéric Pourtier, Frédérique Bardinet-Evraert, V. Darmendrail
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Abstract

ABSTRACT This article studies the effects of IFRS 11 on the value relevance of accounting numbers (VRAN) in France. In 2014, IFRS 11 made the equity method (EM) mandatory to account for joint ventures (JVs) and disallowed proportionate consolidation, the method previously preferred by French groups. Panel method regressions are used to examine the evolution of value relevance in listed groups’ financial statements over a long period (2007–2020). Generalization of the EM reallocates the VRAN, and post-IFRS 11 EM-related numbers are significantly and negatively linked to market value, raising questions about their faithfulness. These results concern all groups using the EM, whatever method they previously used for JVs. This study also looks at the standard-setters’ proposed integral/non-integral classification of net income from JVs and associates, which is found to be non-value relevant. These results have implications at standard-setting level for improving the quality of financial reporting, and for investors.
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IFRS 11前后权益法下会计数字的价值相关性——来自法国的证据
摘要本文研究了《国际财务报告准则第11号》对法国会计数字价值相关性的影响。2014年,《国际财务报告准则第11号》强制要求对合资企业采用权益法,并禁止按比例合并,这是法国集团以前首选的方法。面板法回归用于检验上市集团财务报表中价值相关性在长期(2007-2020)内的演变。EM的泛化重新分配了VRAN,《国际财务报告准则》第11号之后的EM相关数字与市场价值显著负相关,这引发了对其忠诚度的质疑。这些结果涉及到所有使用EM的小组,无论他们以前对JVM使用什么方法。本研究还考察了标准制定者提出的合资企业和联营企业净收入的积分/非积分分类,发现该分类与价值无关。这些结果对提高财务报告质量和投资者具有标准制定层面的意义。
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来源期刊
Accounting in Europe
Accounting in Europe BUSINESS, FINANCE-
CiteScore
5.00
自引率
7.10%
发文量
14
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