Quality of accounting information: an analysis of the adoption of countries by international accounting standards that composes by G7 and BRICS

Abstract

The accounting has been used to reduce the information asymmetry between the information user and the information provider in diverse environments, whether business or not. With global economic growth intensified in the second half of the twentieth century, businesses began operating in international environments and were on the most efficient need to allocate their resources in different environments. In this context, some countries permit or require the use of IFRS/IAS in its financial statements in order to encourage improvements in the quality of the information, and reduce the differences in financial reporting. With this, the aim of this is to analyze the effects of the adoption of international accounting standards by countries making up the G7 and BRICS, regarding the management of accounting results. With the use of two models for the estimation of discretionary accruals, which served as proxies for earnings management, an analysis of the data was performed on panels with controls global variables and 2008 crises and 2010. For this, the sample was collected from the data base Data Stream, from the Thomson-Reuters®, involving countries of both blocs, from 1998 to 2011, which have already adopted the international standards of the IASB. The results outlined that there was increase in earnings management after the adoption of the standards, which led to the rejection of the management reduction hypothesis established as a proxy for quality of accounting information.