The Need for Global Adoption and Adaptation of International Financial Reporting Standards: Post Enron Consequences and the Restoration of Confidence to Capital Markets Following the 2008 Financial and Stock Market Crises

Chapter, "Value Relevance of Accounting Information in capital Markets" IGI Global 2016

10 Pages Posted: 8 Sep 2012 Last revised: 14 Mar 2016

See all articles by Marianne Ojo D Delaney PhD

Marianne Ojo D Delaney PhD

American Accounting Association; Centre for Innovation and Sustainable Development (CISD); Centre for Innovation and Sustainable Development (CISD)

Date Written: September 8, 2012

Abstract

Many questions have been raised as to whether financial accounting has become more conservative. The value relevance and qualitative characteristics of accounting information have become topics of particular relevance given the role they have assumed in influencing the value judgment of investors (local or international) in deciding whether or not to invest in a certain market. Given the quality of accounting information – which has resulted in misleading and inaccurate information (amongst many other low quality attributes), it became evident, particularly following Enron's collapse, to adopt improved, enhanced, better quality standards: namely, International Financial Reporting Standards.

This paper considers the background culminating in the adoption of IFRS – as well as the need for the adoption of IFRS. It also highlights why the value relevance of accounting information is also of vital significance in certain emerging economies and why the successful implementation of IFRS in these jurisdictions may be crucial in restoring investor confidence – particularly in the aftermath of stock market crashes in these economies.

La version française de ce document peut être consulté: http://ssrn.com/abstract=2147206

Suggested Citation

Ojo D Delaney PhD, Marianne, The Need for Global Adoption and Adaptation of International Financial Reporting Standards: Post Enron Consequences and the Restoration of Confidence to Capital Markets Following the 2008 Financial and Stock Market Crises (September 8, 2012). Chapter, "Value Relevance of Accounting Information in capital Markets" IGI Global 2016, Available at SSRN: https://ssrn.com/abstract=2143610 or http://dx.doi.org/10.2139/ssrn.2143610

Marianne Ojo D Delaney PhD (Contact Author)

American Accounting Association ( email )

5717 Bessie Drive
Sarasota, FL 34233-2399
United States

Centre for Innovation and Sustainable Development (CISD) ( email )

United States

Centre for Innovation and Sustainable Development (CISD) ( email )

United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
176
Abstract Views
1,132
Rank
307,910
PlumX Metrics