Skip to content

The impact of IFRS 8 on financial analysts' earnings forecast errors: EU evidence

Research output: Contribution to journalArticle

While the IASB has eliminated virtually all the differences between US GAAP and IFRS with respect to segment reporting, the quality of segment disclosure after IFRS 8 remains questionable, with the European Parliament only endorsing IFRS 8 after a great deal of scrutiny and much debate. We investigate the impact of segment information quality and quantity on analysts’ earnings forecasts after the adoption of IFRS 8.We further address how country-level enforcement influences this relationship using a sample from EU countries. The findings reveal that the quality and quantity of segment information are associated with more accurate earnings forecasts following IFRS 8. Furthermore, the results suggest that enforcement plays a pivotal role in shaping the impact of the principles-based IFRS 8. These findings contribute to the ongoing debate on the quality of segment information under the management approach and role of accounting regulation enforcement. They also provide early evidence on the usefulness of country-by-country reporting.
Original languageEnglish
Pages (from-to)2-17
Number of pages16
JournalJournal of International Accounting, Auditing and Taxation
Volume33
Early online date10 Aug 2018
DOIs
Publication statusPublished - 1 Dec 2018

Documents

  • ABOUD_2018_cright_JIAAT_The Impact of IFRS 8 on Financial Analysts' Earnings Forecast Errors

    Accepted author manuscript (Post-print), 838 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 10/08/20

    Licence: CC BY-NC-ND

Related information

Relations Get citation (various referencing formats)

ID: 10592121