The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act
Abstract This study investigates whether the 2009 German Accounting Law Modernization Act has affected the reporting and accounting practices of German private firms. In reforming German accounting standards, numerous accounting options were deleted, several accounting rules were transferred from IF...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Springer
2017-08-01
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| Series: | Business Research |
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| Online Access: | http://link.springer.com/article/10.1007/s40685-017-0051-1 |
| _version_ | 1818695516387540992 |
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| author | Julia Zicke Florian Kiy |
| author_facet | Julia Zicke Florian Kiy |
| author_sort | Julia Zicke |
| collection | DOAJ |
| description | Abstract This study investigates whether the 2009 German Accounting Law Modernization Act has affected the reporting and accounting practices of German private firms. In reforming German accounting standards, numerous accounting options were deleted, several accounting rules were transferred from IFRS to German GAAP with some modifications, and disclosure requirements were extended. In our analysis, we examine the changes in financial reporting and their effects on disclosures. We use four financial reporting property measures: discretionary accruals, the correlation between operating cash flow and accruals, the persistence of earnings, and the predictability of earnings. The results reveal no change across all financial reporting properties. Examining disclosure compliance for capitalized development costs and other provisions reveals substantial variation in compliance. |
| first_indexed | 2024-12-17T13:46:43Z |
| format | Article |
| id | doaj.art-2999872904e24026901db872272156d6 |
| institution | Directory Open Access Journal |
| issn | 2198-3402 2198-2627 |
| language | English |
| last_indexed | 2024-12-17T13:46:43Z |
| publishDate | 2017-08-01 |
| publisher | Springer |
| record_format | Article |
| series | Business Research |
| spelling | doaj.art-2999872904e24026901db872272156d62022-12-21T21:46:08ZengSpringerBusiness Research2198-34022198-26272017-08-0110221524810.1007/s40685-017-0051-1The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization ActJulia Zicke0Florian Kiy1Corporate Financial Reporting, SAP SEAccounting Department, Faculty of Economics and Business Administration, Goethe-University Frankfurt am MainAbstract This study investigates whether the 2009 German Accounting Law Modernization Act has affected the reporting and accounting practices of German private firms. In reforming German accounting standards, numerous accounting options were deleted, several accounting rules were transferred from IFRS to German GAAP with some modifications, and disclosure requirements were extended. In our analysis, we examine the changes in financial reporting and their effects on disclosures. We use four financial reporting property measures: discretionary accruals, the correlation between operating cash flow and accruals, the persistence of earnings, and the predictability of earnings. The results reveal no change across all financial reporting properties. Examining disclosure compliance for capitalized development costs and other provisions reveals substantial variation in compliance.http://link.springer.com/article/10.1007/s40685-017-0051-1German Accounting Law Modernization ActGerman GAAPAccounting standardsFinancial reporting propertiesPrivate firms |
| spellingShingle | Julia Zicke Florian Kiy The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act Business Research German Accounting Law Modernization Act German GAAP Accounting standards Financial reporting properties Private firms |
| title | The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act |
| title_full | The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act |
| title_fullStr | The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act |
| title_full_unstemmed | The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act |
| title_short | The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act |
| title_sort | effects of accounting standards on the financial reporting properties of private firms evidence from the german accounting law modernization act |
| topic | German Accounting Law Modernization Act German GAAP Accounting standards Financial reporting properties Private firms |
| url | http://link.springer.com/article/10.1007/s40685-017-0051-1 |
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