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Transparency in Fair Value Accounting under IFRS: An Examination of Greek Listed Companies’ Level of Compliance with IFRS Goodwill Disclosure Requirements
Jönköping University, Jönköping International Business School, JIBS, Accounting and Law.
2011 (English)In: The Economies of the Balkan and Eastern Europe Countries in the Changed World / [ed] Anastasios G. Karasavvoglou, Cambridge Scholar Publishing , 2011Chapter in book (Refereed)
Abstract [en]

The mandatory adoption of IFRS in 2005 by publicly held companies in the European Union is viewed as another step towards establishing a high quality and transparent business language for European companies. Currently many voices warn that it is meaningless to speak about high quality and transparent financial reporting unless the effective and consistent implementation of IFRS is ensured; especially in issues that involve fair value accounting. Despite the importance of disclosures in issues where fair value accounting is involved, there is little evidence about companies’ level of compliance with IFRS disclosure requirements in a mandatory environment. This study focuses on IFRS goodwill disclosures due to the fact that goodwill accounting under IFRS is heavily influenced by fair value accounting. Specifically, using a content analysis method it examines compliance with IFRS 3 and IAS 36 for companies listed on the Athens Stock Exchange during the first four years of mandatory use of IFRS. Its findings show some potentially serious deficiencies in the implementation of IFRS disclosures for goodwill and mainly with those that are closely related to fair value accounting. Moreover, a particularly alarming finding of this study is that even after four years of IFRS introduction, Greek companies have not increased the volume of information that IAS 36 mandates. The findings of this study could be valuable for standard setters as well as for local enforcement mechanisms.

Place, publisher, year, edition, pages
Cambridge Scholar Publishing , 2011.
Keywords [en]
IFRS, Goodwill, Disclosures, Level of Compliance, Athens Stock Exchange
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-13976ISBN: 1-4438-2689-8 (print)OAI: oai:DiVA.org:hj-13976DiVA, id: diva2:405777
Available from: 2011-03-23 Created: 2010-12-17 Last updated: 2011-04-08

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Baboukardos, Diogenis

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf