Measuring the comparability of the consolidated financial statements of the European listed companies from the viewpoint of users.

Vicky Cole

Research output: Chapter in Book/Report/Conference proceedingMeeting abstract (Book)

Abstract

The implementation of the International Financial Reporting Standards (IFRS) has had
important consequences for the presentation and the content of the consolidated financial
statements of listed European companies. It is the first time in history that all European listed
companies apply the same standards. Most people assume that the financial statements are
now comparable within Europe. Reaching higher comparability was one of the main goals of
the European commission, in order to contribute to a better functioning of the internal market.
Recent studies, however, show that differences in the application of the IFRS standards still
exist due to for example open and covert options or even due to different interpretations
resulting from different cultural backgrounds (Nobes, 2006). These differences in application
can have a negative impact on the comparability of the financial statements. This means that
users might wrongfully assume that the financial statements they use are comparable. This
can have an adverse impact on their economic decisions. Therefore, this research wants to
investigate how comparable the consolidated financial statements of the European listed
companies truly are from the viewpoint of users of these financial statements. The results of
this research can have an important impact on the further development of the IFRS standards
in Europe since it focuses both on the wishes and information needs of the users and the
problems concerning comparability within the IFRS standards.
Original languageEnglish
Title of host publication2010 ICAS Research Development Event, Edinburgh, Scotland
Publication statusPublished - 1 Mar 2010
EventFinds and Results from the Swedish Cyprus Expedition: A Gender Perspective at the Medelhavsmuseet - Stockholm, Sweden
Duration: 21 Sep 200925 Sep 2009

Conference

ConferenceFinds and Results from the Swedish Cyprus Expedition: A Gender Perspective at the Medelhavsmuseet
CountrySweden
CityStockholm
Period21/09/0925/09/09

Keywords

  • IFRS
  • Comparability
  • Financial statements

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