This paper analyzes a sample of 1,722 European firms during their mandatory transition from local country accounting rules (Local GAAP) to International Financial Reporting Standards (IFRS) in 2004 and 2005 using the same set of firm-year observations. We use this unique transition period to examine the impact of a change in accounting standards on the quality of firms' financial statements. The transition to IFRS appears to have a small but significant impact on firms' reported total assets and book equity, as well as on their reported goodwill, intangible assets, property plant and equipment, long term debt and current assets and liabilities.
CAPKUN, V., JENY, A., JEANJEAN, T. and WEISS, L. (2008). Mandatory Transition to IFRS: Value Relevance and Earnings Management. In: Proceedings of the American Accounting Association - Annual Meeting 2008. American Accounting Association (AAA).