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Group Accounting: The Effect of IFRS Adoption. The Case of Greece

Author

Listed:
  • Ioannis Samaras
  • Stergios Athianos

    (TEI of Central Macedonia, Greece)

Abstract

The present study examines the value relevance of disclosed related party transactions (RPTs) in the Greek listed companies on the Athens Stock Exchange. We are based on two types of transactions: exchange of goods-products and the exchange of assets (group accounting), using a value relevance approach. We apply the model of Ohlson (1995) for the period 2003 - 2013 and we observe that the reported earnings of firms selling goods or assets to related parties exhibit a lower valuation coefficient than those of firms without such transactions. The Greek accounting standards provide limited recognition of assets, together with the frequent use of forecasts, resulting in a more conservative recognition of results compared to the IAS / IFRS, which are using fair value for the recognition of financial instruments and internally generated intangible assets.

Suggested Citation

  • Ioannis Samaras & Stergios Athianos, 2016. "Group Accounting: The Effect of IFRS Adoption. The Case of Greece," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 15(4), pages 661-682, December.
  • Handle: RePEc:ami:journl:v:15:y:2016:i:4:p:661-682
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    References listed on IDEAS

    as
    1. Ray Ball, 2006. "International Financial Reporting Standards (IFRS): pros and cons for investors," Accounting and Business Research, Taylor & Francis Journals, vol. 36(S1), pages 5-27.
    2. Mitton, Todd, 2002. "A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis," Journal of Financial Economics, Elsevier, vol. 64(2), pages 215-241, May.
    3. Ali, A & Hwang, LS, 2000. "Country-specific factors related to financial reporting and the value relevance of accounting data," Journal of Accounting Research, Wiley Blackwell, vol. 38(1), pages 1-21.
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    More about this item

    Keywords

    IFRS; value relevance; group accounting; financial reporting;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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