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Impact of IFRS on Accounting Data – Gray Index of Conservatism Applied to Some European Listed Companies

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  • Istrate Costel

    (Faculty of Economics and Business Administration Alexandru Ioan Cuza University Iasi, Romania)

Abstract

The Gray index of conservatism (also called index of comparability) is a good instrument to assess differences between two or more sets of accounting standards. We use this index to measure the impact of the compulsory application of IFRS in Europe, in 2005. The sample contains data from almost 600 companies listed on Euronext markets in 2005 (Amsterdam, Brussels, Lisbon, and Paris). The paper analyzes some accounting figures such as equity, net income, leverage, return on equity and return on assets. The results confirm that former Belgian, French, and Portugal GAAP were more conservative than IFRS. In some cases, for all the countries the IFRS numbers seem to be much less conservative.

Suggested Citation

  • Istrate Costel, 2013. "Impact of IFRS on Accounting Data – Gray Index of Conservatism Applied to Some European Listed Companies," Scientific Annals of Economics and Business, Sciendo, vol. 60(2), pages 1-19, December.
    • Handle: RePEc:vrs:aicuec:v:60:y:2013:i:2:p:19:n:6
    DOI: 10.2478/aicue-2013-0023
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    References listed on IDEAS

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    1. Sally Aisbitt, 2006. "Assessing the Effect of the Transition to IFRS on Equity: The Case of the FTSE 100," Accounting in Europe, Taylor & Francis Journals, vol. 3(1), pages 117-133, October.
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    Cited by:

    1. Daniela PORDEA & Alin-Constantin DUMITRESCU, 2021. "Convergence to IFRS in Romania – Score per Minute," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 19(162), pages 373-373, May.
    2. Costel ISTRATE & Ioan Bogdan ROBU & Mihai CARP, 2015. "Impact Of The Transition To Ifrs For The Romanian Listed Companies In Financial Distress," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 83-102, June.
    3. Kristina Rudžionienė & Miglė Černiauskaitė & Rūta Klimaitienė, 2022. "The impact of IFRS adoption on companies' financial ratios: evidence from Lithuania," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(3), pages 212-226, March.

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