Regulation and valuation of non-International Financial Reporting Standards disclosures
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Regulation and valuation of non-International Financial Reporting Standards disclosures | |
| Creator | Issirinarain, Sadhir Adelowotan, Michael Rouse, Marybeth | |
| Description | Orientation: Globally, non-International Financial Reporting Standards (non-IFRS) disclosures have gained prominence. The International Accounting Standards Board (IASB) is in the process of deciding on the appropriate degree of regulation over such disclosures.Research purpose: This study investigated the value relevance and the extent of regulation required for non-IFRS disclosures.Motivation for the study: Non-IFRS disclosures may be prone to opportunistic use.Research approach/design and method: This study used panel regression to compare two categories of non-IFRS disclosures: voluntary disclosures and disclosures required by regulations other than accounting standards (mandatory disclosures), with the equivalent IFRS disclosures. This study was limited to the mining sectors that were identified as the most significant contributors to non-IFRS disclosures. Earnings disclosures were used as a proxy because of their prominence in the market.Main findings: All forms of disclosures, IFRS, voluntary and mandatory disclosures, were found to be value relevant. The empirical findings further suggest that voluntary disclosures were the most value relevant of these disclosures.Practical/managerial implications: This study supports a careful approach to further regulation over voluntary disclosures so as not to impair its value relevance. There is, however, an opportunity for reporting jurisdictions to implement local regulatory measures based on the identification of common voluntary disclosures among companies within the same sector.Contribution/value-add: This study contributes towards the future standard setting of voluntary disclosures and uniquely compares the value relevance of IFRS earnings disclosures and non-IFRS earnings disclosures from a South African perspective. | |
| Publisher | AOSIS | |
| Date | 2023-11-23 | |
| Identifier | 10.4102/jef.v16i1.885 | |
| Source | Journal of Economic and Financial Sciences; Vol 16, No 1 (2023); 11 pages 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/885/1665
https://jefjournal.org.za/index.php/jef/article/view/885/1666
https://jefjournal.org.za/index.php/jef/article/view/885/1667
https://jefjournal.org.za/index.php/jef/article/view/885/1668
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