Lau Chee Kwong
Bio: Lau Chee Kwong is an academic researcher. The author has contributed to research in topics: Accounting standard & Accounting information system. The author has an hindex of 1, co-authored 1 publications receiving 29 citations.
01 Jan 2010
TL;DR: In this article, the authors examined the value relevance of accounting information and financial reporting among firms in Malaysia across three reporting periods with different levels of the International Financial Reporting Standards (IFRS) adoption.
Abstract: In consistent with international development, the Malaysian Accounting Standards Board (MASB) has also embarked on a convergence exercise for its financial reporting standards with the International Financial Reporting Standards (IFRS). The question of interest is whether the adoption of the IFRS has improved the value relevance of financial reporting and accounting information in Malaysia. This study, therefore, aims to examine the value relevance of accounting information and financial reporting among firms in Malaysia across three reporting periods with different levels of the IFRS adoption. A period of 15 years i.e. 1993 to 2007 was selected for analysis. The 15-year period was partitioned into three reporting periods, namely, Pre-MASB (1993-1998); Post-MASB (1999-2005); and IFRS Convergence (2006-2007). A modified price model (Ohlson, 1995), which consists of two major indicators from the main financial statements i.e. balance sheet and income statement, was used to test the value relevance of financial reporting. Overall, this study provides evidence that IFRS is value relevant for decision making among investors (as reflected in the market value). This study finds that the book value and earnings are significant in jointly explaining the variations in their associated market value for the three reporting periods. When the IFRS become mandatory for reporting entities in the Malaysian market, the role of earnings and income statement in stock market valuation become increasingly important as compared to the role of book value of equity.
TL;DR: In this paper, the authors investigated the value relevance of accounting information in pre- and post-financial periods of International Financial Reporting Standards (IFRS) application for Turkish listed firms from 1998 to 2011.
Abstract: Value relevance is being defined as the ability of information disclosed by financial statements to capture and summarize firm value. Value relevance can be measured through the statistical relations between information presented by financial statements and stock market values or returns. In many studies, Ohlson model (1995) has been adopted to explore relationships among the market value of equity and two main financial reporting variables, namely the book value of equity per share (represents balance sheet) and earnings per share (represents income statement). This study investigates the value relevance of accounting information in pre- and post-financial periods of International Financial Reporting Standards’ (IFRS) application for Turkish listed firms from 1998 to 2011. Market value is related to book value and earnings per share by using the Ohlson model (1995). Overall book value is value relevant in determining market value or stock prices. The results show that value relevance of accounting information has improved in the post-IFRS period (2005-2011) considering book values while improvements have not been observed in value relevance of earnings.
TL;DR: In this article, a qualitative analysis of the impact of the adoption of International Financial Reporting Standards (IFRS) on companies in emerging countries is presented, highlighting the implications of successful convergence practices that may be useful to other emerging markets.
Abstract: Purpose The paper aims to build a greater understanding of countries transitioning from local generally accepted accounting principles (GAAP) to International Financial Reporting Standards (IFRS). Second, the study assembles prior literature and examines the issues raised during the convergence. Finally, the paper recognises the implications of successful convergence practices that may be useful to other emerging markets and particular reference to India which is transitioning from local GAAP to IFRS-based principles. Design/methodology/approach The present study is a qualitative analysis that explores the Cost-benefit outcome carried by developed nations. The paper segregates the literature into three segments: developed nations, East Asian countries and the Brazil, Russia, India and China (BRIC) nations. Findings There are numerous issues and implications divulged from studies pertaining to the adoption of IFRS, i.e. corporate governance, fair value accounting and other environmental concerns. The paper further illustrates instances of dissimilarity of the Indian Accounting Standards to the IFRS. Research limitations/implications It is evident from the literature that limited studies have been carried out in the context of East Asian countries and BRIC nations in comparison to the developed nations. Further research should provide more comprehensive empirical evidence on the outcome of mandatory adoption of IFRS on firms in emerging countries. Originality/value The paradigm practice of mandatory adoption of IFRS by developed nations can be an insight for emerging countries that participate in the capital markets and for companies in compliance with the IFRS.
TL;DR: In this paper, the adoption of International Financial Reporting Standards (IFRS) by the Nigerian financial institutions is discussed and the change in accounting regulations is as a result of the weaknesses of NGAAP and low disclosure requirements.
Abstract: This paper discusses about the adoption of International Financial Reporting Standards (IFRS) by the Nigerian financial institutions. Nigeria have been using domestic accounting standard (NGAAP) for banks and non-banks financial institutions known as Statement of Accounting Standards (SAS 10 Part 1 and SAS 15 Part 2) issued in 1990 and 1997 respectively for financial reporting. These domestic standards were adopted from International Accounting Standards (IAS 30) but have not been updated like IAS 30 as reported by the Report on Observance of Standard Codes (ROSC) of Nigeria in 2004 and 2011. The change in accounting regulations is as a result of the weaknesses of NGAAP and low disclosure requirements. IFRS reporting has more disclosures than NGAAP especially for financial institutions. Under NGAAP financial instruments have not been classified as in IFRS. For instance, financial instruments have been classified into four under IAS 39 as; (i) recognised fair value on gain or loss in profit or loss, (ii) are measured at amortised cost for investments held-to-maturity, (iii) measured at amortised cost for loans and receivables, (iv) measured at fair value gain or loss for available-for-sale financial assets recognised in other comprehensive income. Additionally, financial liabilities have been categories into two namely; (i) measured at amortised fair value on financial liabilities through profit or loss and, (ii) measured at amortised other liabilities. Now with the mandatory adoptions of reporting under IFRS by all listed financial institutions, will the accounting disclosures be more value relevant among Nigerian financial institutions? DOI: 10.5901/mjss.2015.v6n1p409
TL;DR: In this paper, the authors examined the value relevance of financial reporting from a developing country perspective after the adoption of the full set of IFRS, using the Ohlson model.
Abstract: The objective of this paper is to examine the value relevance of financial reporting from a developing country perspective after the adoption of the full set of IFRS. The study utilizes the Ohlson ...
01 Jan 2011
TL;DR: Thesis (Ph.D.) as discussed by the authors submitted in total fulfilment of the requirements for the degree of Doctor of Philosophy [to the] Department of Accounting, La Trobe Business School, Faculty of Business, Economics and Law.
Abstract: Thesis (Ph.D.) - La Trobe University, 2011%%%%Submission note: "A thesis submitted in total fulfilment of the requirements for the degree of Doctor of Philosophy [to the] Department of Accounting, La Trobe Business School, Faculty of Business, Economics and Law, La Trobe University, Bundoora".