The Impact and Implications of International Financial Reporting Standards in the United Kingdom: Evidence from the Alternative Investment Market

Ali, Arshad, Akbar, Saeed ORCID: 0000-0002-1011-9799, Ormrod, Phillip and Shah, Syed Zulfiqar Ali (2016) The Impact and Implications of International Financial Reporting Standards in the United Kingdom: Evidence from the Alternative Investment Market. AUSTRALIAN ACCOUNTING REVIEW, 26 (4). pp. 360-375.

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Abstract

<jats:p>This paper investigates the implications of the adoption of International Financial Reporting Standards (IFRS) from the perspective of small and growing companies listed on the United Kingdom's (UK) Alternative Investment Market (AIM). We consider the cost–benefit issues of IFRS adoption and investigate its economic consequences. The results reveal that only a small number of comparatively larger AIM companies have voluntarily adopted IFRS for some anticipated economic objectives. The results also suggest that most of the mandatory adopters have done so for regulation compliance purposes and they would not have adopted IFRS if a choice was available to them. As the existing literature mainly covers the impact of IFRS adoption on large listed companies, the findings of this study will give better insights into extending IFRS to private companies. The findings show an association between the early adoption of IFRS and firm size and conclude that size matters in both the adoption and implications of IFRS. This study also contributes to the debate on the implications of the new IFRS‐based UK GAAP for SMEs‐FRS 102, which will replace the majority of existing UK accounting standards for small and medium enterprises (SMEs) with effect from 2015. Our findings have implications for managers, regulators, market participants, practitioners and other stakeholders.</jats:p>

Item Type:	Article
Uncontrolled Keywords:	International Financial Reporting Standards, Alternative Investment Market, Small and Growing Companies, Firm Size
Depositing User:	Symplectic Admin
Date Deposited:	17 May 2016 14:24
Last Modified:	30 Oct 2023 23:21
DOI:	10.1111/auar.12140
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3001260

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• Impact and Implications of International Financial Reporting Standards in the UK: Evidence from the Alternative Investment Market. (deposited 22 Feb 2016 11:11)
  • The Impact and Implications of International Financial Reporting Standards in the United Kingdom: Evidence from the Alternative Investment Market. (deposited 17 May 2016 14:24) [Currently Displayed]