Comparisons on selected ratios between IFRS and US GAAP companies

Da‐Hsien Bao, Jooh Lee and George Romeo

Journal of Financial Reporting and Accounting, 2010, vol. 8, issue 1, 22-34

Abstract: Purpose - The purpose of this paper is to provide evidence of the effect of the differences related to reporting inventory, property plant and equipment, intangible assets, and development costs between International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP) companies. Design/methodology/approach - Both univariate tests (t‐tests) and multivariate tests (ANOVA, probit and logit analyses) are used to compare the ratios between IFRS and US GAAP companies. Findings - Results consistently show that IFRS‐country firms have a significantly higher current ratio, a significantly lower asset turnover ratio, and a significantly lower debt‐to‐asset ratio. Research limitations/implications - This paper only focuses on inventory, property plant and equipment, intangible assets, and development costs. Other financial variables are not considered. Practical implications - The results are useful for individuals who are interested in reporting and investing in countries using different financial reporting systems. Originality/value - This paper is a timely examination of the recent emphasis of mandating IFRS.

Keywords: Accounting standards; International standards; Financial reporting (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:v:8:y:2010:i:1:p:22-34

DOI: 10.1108/19852511011055925

Access Statistics for this article

Journal of Financial Reporting and Accounting is currently edited by Prof. Aziz Jaafar and Prof Khaled Hussainey

More articles in Journal of Financial Reporting and Accounting from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().