EconPapers    
Economics at your fingertips  
 

CHANGES IN IFRS 3 ACCOUNTING FOR BUSINESS COMBINATIONS: A FEEDBACK AND EFFECTS ANALYSIS

Walid Masadeh, Ebrahim Mansour and Wasfi AL Salamat

Global Journal of Business Research, 2017, vol. 11, issue 1, 61-70

Abstract: This research reviews the effect of IFRS (International Financial Reporting Standards) 3 with a focus on the changes in accounting procedures under business combinations. A content analysis research methodology was used to code and categories feedback data on the effects of IFRS as positive and negative. Results indicated that IFRS is considered successful by 71% of its users and unsuccessful by 29% of its users. IFRS success is credited to the enhancement of comparability of accounting information and streamlining of acquisition methods and goodwill under business combinations. Contrarily, IFRS is considered unsuccessful, because it is riddled with negative consequences, such as rising costs of compliance and preparation, especially in developing and less industrialized nations. We conclude that comparability of accounting information on an international scale is the most positive effect of IFRS 3, while increasing cost of compliance is the greatest negative effect of IFRS 3. We suggest that the International Accounting Standards Board (IASB), Financial Accounting Standards Board (FASB), and other bodies involved in setting global accounting standards should focus on finding ways to incentivize developing countries and companies to comply with the standards. We recommend further studies on ways to assist companies to reduce preparation costs resulting from IFRS changes

Keywords: Business Combinations; Acquisition; Goodwill (search for similar items in EconPapers)
JEL-codes: M16 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.theibfr2.com/public_ftp/RePEc/IBF/gjbre ... jbr-v11n1-2017-5.pdf (application/pdf)

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:ibf:gjbres:v:11:y:2017:i:1:p:61-70

Access Statistics for this article

Global Journal of Business Research is currently edited by Terrance Jalbert

More articles in Global Journal of Business Research from The Institute for Business and Finance Research
Series data maintained by Mercedes Jalbert ().

 
Page updated 2017-09-29
Handle: RePEc:ibf:gjbres:v:11:y:2017:i:1:p:61-70