Study predicts improved earnings quality if IFRS is mandated in U.S.

02/4/2012 | Compliance Week

There is evidence that earnings quality could improve for U.S. public companies if the Securities and Exchange Commission decides to mandate the use of International Financial Reporting Standards, according to a study by accounting professors at the University of Windsor and the University of Auckland. "Our results indicate that IFRS could improve earnings quality if U.S. firms adopted IFRS by reducing target beating and increasing earnings persistence," the authors wrote.

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