Department of Accounting Studies Education, University of Education, Kumasi Campus, Winneba, Ghana
Original Research Article
IFRS Adoption and Earnings Quality in Sub-Saharan Africa
Author(s): Prince Gyimah*
This study perused the correlation between IFRS adoption and earnings quality of listed firms in Sub-Saharan Africa country, Ghana. The study used secondary data collected from sixteen non-financial listed firms over pre-adoption periods of IFRS (2005 and 2006) and immediate post-adoption periods of IFRS (2007 and 2008). 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.. View more»