International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks
This study investigates the impact of IFRS on income smoothing activities through loan loss provisions for Australia and New Zealand banks over the period 1995-2009. Prior to IFRS implementation, bank loans provisioning is subject to managerial manipulation, possibly due to the weakness in GAAP that...
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| Format: | Article |
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Social Science Electronic Publishing, Inc
2010
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| _version_ | 1803627025140809728 |
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| author | Abdul Adzis, Azira Tripe, David W.L. Dunmore, Paul V. |
| author_facet | Abdul Adzis, Azira Tripe, David W.L. Dunmore, Paul V. |
| author_sort | Abdul Adzis, Azira |
| collection | UUM |
| description | This study investigates the impact of IFRS on income smoothing activities through loan loss provisions for Australia and New Zealand banks over the period 1995-2009. Prior to IFRS implementation, bank loans provisioning is subject to managerial manipulation, possibly due to the weakness in GAAP that provides room for managers to manage earnings.We conjecture that the robust disclosure requirements under IFRS (particularly IAS 39) could mitigate income smoothing activities of the IFRS adopters.Our paper examines the effects of IFRS adoption on Australia and New Zealand banks as previous studies give much attention to the European Union (EU) samples.The findings demonstrate that income smoothing activities of banks in Australia and New Zealand are reduced after IFRS adoption. |
| first_indexed | 2024-07-04T05:59:30Z |
| format | Article |
| id | uum-15731 |
| institution | Universiti Utara Malaysia |
| last_indexed | 2024-07-04T05:59:30Z |
| publishDate | 2010 |
| publisher | Social Science Electronic Publishing, Inc |
| record_format | dspace |
| spelling | uum-157312016-04-24T01:55:08Z https://repo.uum.edu.my/id/eprint/15731/ International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks Abdul Adzis, Azira Tripe, David W.L. Dunmore, Paul V. HF5601 Accounting HG Finance This study investigates the impact of IFRS on income smoothing activities through loan loss provisions for Australia and New Zealand banks over the period 1995-2009. Prior to IFRS implementation, bank loans provisioning is subject to managerial manipulation, possibly due to the weakness in GAAP that provides room for managers to manage earnings.We conjecture that the robust disclosure requirements under IFRS (particularly IAS 39) could mitigate income smoothing activities of the IFRS adopters.Our paper examines the effects of IFRS adoption on Australia and New Zealand banks as previous studies give much attention to the European Union (EU) samples.The findings demonstrate that income smoothing activities of banks in Australia and New Zealand are reduced after IFRS adoption. Social Science Electronic Publishing, Inc 2010-11 Article PeerReviewed Abdul Adzis, Azira and Tripe, David W.L. and Dunmore, Paul V. (2010) International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks. SSRN Electronic Journal. pp. 1-22. ISSN 1556-5068 http://doi.org/10.2139/ssrn.1717307 doi:10.2139/ssrn.1717307 doi:10.2139/ssrn.1717307 |
| spellingShingle | HF5601 Accounting HG Finance Abdul Adzis, Azira Tripe, David W.L. Dunmore, Paul V. International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks |
| title | International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks |
| title_full | International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks |
| title_fullStr | International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks |
| title_full_unstemmed | International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks |
| title_short | International Financial Reporting Standards (IFRS) and income smoothing activities of banks: Evidence from Australia and New Zealand commercial banks |
| title_sort | international financial reporting standards ifrs and income smoothing activities of banks evidence from australia and new zealand commercial banks |
| topic | HF5601 Accounting HG Finance |
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