Impact Of Adopting IAS-IFRS On The Handling Of Accounting Data: The Case Of France

<p>In this article we look at the possible relation between the IAS-IFRS, which promotes a present value, and earnings management enhanced by the application of these standards. The aim of this paper is to analyse the impact of the adoption of IAS-IFRS standards on the earnings manipulation used by managers to manipulate their earnings and other accounting information in order to keep the same image in front of investors and shareholders.</p> <p>We are expanding, to the French context, the problem of information content of the discretionary component of accounting income in connection with the application of IAS-IFRS since 2005.</p> <p>On the basis of a sample of 96 firms-year observations, selected from France, that adopted the IAS-IFRS since 2005, we studied the relationship of association between accounting variables the impact of the use of IAS-IFRS on discretionary accruals. In other words, we tried to analyse the advantages and disadvantages of the adoption of IAS-IFRS.</p> <p>The study results show that the manipulation of accounting information existed both before and after the adoption of IAS-IFRS. However, the application of IAS-IFRS accounting standards in France had less motivated managers to manipulate the accounting numbers to increase earnings. Infact, the degree of earnings management is higher before the adoption of IAS-IFRS (the manipulations were 22.06% of discretionary accruals after adoption of IAS-IFRS and 31.28% before).</p>