Influential Article Review -The Implications of Financial Reporting Requirements on Private Corporations

Authors

  • Jade Travers
  • Saoirse Little
  • Aleyna Bush

Keywords:

German Accounting Law Modernization Act, German GAAP, Accounting standards, Financial reporting properties, Private firms

Abstract

This paper examines accounting. We present insights from a highly influential paper. Here are the highlights from this paper: This study investigates whether the 2009 German Accounting Law Modernization Act has affected the reporting and accounting practices of German private firms. In reforming German accounting standards, numerous accounting options were deleted, several accounting rules were transferred from IFRS to German GAAP with some modifications, and disclosure requirements were extended. In our analysis, we examine the changes in financial reporting and their effects on disclosures. We use four financial reporting property measures: discretionary accruals, the correlation between operating cash flow and accruals, the persistence of earnings, and the predictability of earnings. The results reveal no change across all financial reporting properties. Examining disclosure compliance for capitalized development costs and other provisions reveals substantial variation in compliance.For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.

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Published

2019-12-12

How to Cite

Travers, J., Little, S., & Bush, A. (2019). Influential Article Review -The Implications of Financial Reporting Requirements on Private Corporations. Journal of Accounting and Finance, 19(10). Retrieved from https://articlegateway.com/index.php/JAF/article/view/3380

Issue

Section

Articles