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The influence of country, industry, and topic factors on IFRS policy choice

Research output: Contribution to Journal/MagazineJournal articlepeer-review

<mark>Journal publication date</mark>2014
Issue number4
Number of pages36
Pages (from-to)386-421
Publication StatusPublished
<mark>Original language</mark>English


This paper proposes a framework for understanding management's decision-making on observable accounting policy choices. The framework is used to hypothesize how country, industry, and topic factors influence policy choice under International Financial Reporting Standards (IFRS). The hypotheses are tested on the choices made by the largest firms from 10 jurisdictions on a comprehensive set of IFRS policy topics, which are hand-collected from the financial statements. The results are consistent with the framework: country factors are particularly influential when the choice does not affect an important accounting number; and industry and topic factors influence the choice on some topics. Overall, we find that country factors have the greatest influence on IFRS policy choice.