Effects of changes in financial statement aggregation under IFRS on the behaviour of non-professional and professional information users

Ji Seon Yoo, Tae Sup Shim

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates the effects of the degree of financial statement aggregation and footnote disclosures under IFRS on the judgements of information users with different knowledge levels. A quasi-experiment is conducted with Korean MBA students and CPAs as surrogates for non-professional and professional users, respectively. The results suggest that changes in the level of aggregation of financial statements influence the judgements of non-professional but not professional information users. Neither the judgements of non-professional users nor those of professional users are affected by footnote disclosures. The findings of this study highlight the need for companies to improve the presentation format of their financial statements to better convey relevant information to users.

Original languageEnglish
Pages (from-to)733-748
Number of pages16
JournalApplied Economics
Volume54
Issue number7
DOIs
StatePublished - 2022

Keywords

  • Financial statement changes
  • IFRS
  • footnote disclosure
  • judgement

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