Department of Accounting, University of Education, Winneba, Ghana
Research Article
IFRS Adoption and Earnings Quality Sub-Saharan
Author(s): Armstrong Ephraim Awinbugri* and Adu Job Boahen
This study perused the correlation between IFRS adoption and earnings quality of listed firms in Sub-Saharan Africa, Ghana. The study used secondary data collected from sixteen non-financial listed firms over pre-adoption periods of IFRS and immediate post-adoption periods of IFRS.The study used logistic regression to examine the impact of pre-and- post adoption of IFRS’s on earnings quality. The results showed that firms managed to manipulate earnings toward a positive target more frequently in the pre-IFRS adoption period than the post-adoption period, and firms recognized large losses more frequently in the post-IFRS adoption period when they occurred as compared to the pre- IFRS adoption period. The study reinforces that adoption of IFRS prevents manipulation of earnings, limits possible flexibilities and accounting choices, and provide clearer rules that signal high quality.. View more»