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(Reference retrieved automatically from Web of Science through information on FAPESP grant and its corresponding number as mentioned in the publication by the authors.)

The Impact of IFRS in Brazil: The Legacy of Mandatory Book-tax Conformity

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Author(s):
Nakao, Ilvio Hiroshi [1] ; Gray, Sidney J. [2]
Total Authors: 2
Affiliation:
[1] Univ Sao Paulo, Sao Paulo - Brazil
[2] Univ Sydney, Sydney, NSW - Australia
Total Affiliations: 2
Document type: Journal article
Source: AUSTRALIAN ACCOUNTING REVIEW; v. 28, n. 4, p. 482-495, DEC 2018.
Web of Science Citations: 1
Abstract

We investigate how Brazil's historical and institutional context is likely important in determining the impact and benefits of International Financial Reporting Standards (IFRS) with special reference to the legacy of taxation regulation, referred to as mandatory book-tax conformity. We hypothesise that in the early period following IFRS adoption, information quality may not significantly improve in the case of companies with limited levels of stock market monitoring because of the path dependency effects of historically important tax considerations. Overall, our results are consistent with the prediction that companies with limited levels of stock market monitoring continue to exhibit book-tax conformity with no information quality improvements. At the same time, the results relating to companies with higher levels of stock market monitoring are consistent with the expected information quality improvements associated with IFRS adoption. (AU)

FAPESP's process: 11/07281-0 - IFRS adoption and influence of tax rules on financial reporting practices in Brazil and Australia
Grantee:Sílvio Hiroshi Nakao
Support Opportunities: Scholarships abroad - Research