The effect of mandatory adoption of IFRS on the magnitude of accruals

Purpose This paper investigates whether the greater flexibility of International Financial Reporting Standards (IFRS) in contrast to accounting models that were used before those standards became mandatory meant a significant change in the magnitude of accruals recognized in the accounting income. Design/methodology/approach 18,126 observations are analyzed on 1,881 non-financial companies in 19 European countries in 2000–2012. A...