POURTIER, Frederic; BARDINET EVRAERT, Frederique; DARMENDRAIL, Veronique

doi:10.1080/17449480.2023.2192235

Institut de Recherche en Gestion des Organisations [IRGO]

BARDINET EVRAERT, Frederique

Institut de Recherche en Gestion des Organisations [IRGO]

DARMENDRAIL, Veronique

Institut de Recherche en Gestion des Organisations [IRGO]

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Article de revue

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Accounting in Europe. 2023, vol. 20, n° 2, p. 194-224

Resumen en inglés

This article studies the effects of IFRS 11 on the value relevance of accounting numbers (VRAN) in France. In 2014, IFRS 11 made the equity method (EM) mandatory to account for joint ventures (JVs) and disallowed proportionate consolidation, the method previously preferred by French groups. Panel method regressions are used to examine the evolution of value relevance in listed groups’ financial statements over a long period (2007–2020). Generalization of the EM reallocates the VRAN, and post-IFRS 11 EM-related numbers are significantly and negatively linked to market value, raising questions about their faithfulness. These results concern all groups using the EM, whatever method they previously used for JVs. This study also looks at the standard-setters’ proposed integral/non-integral classification of net income from JVs and associates, which is found to be non-value relevant. These results have implications at standard-setting level for improving the quality of financial reporting, and for investors. © 2023 European Accounting Association.< Leer menos

Palabras clave en inglés

Equity method

IFRS 11

Value redevance

Stock price

France

URI

https://oskar-bordeaux.fr/handle/20.500.12278/187905

DOI

http://dx.doi.org/10.1080/17449480.2023.2192235

Centros de investigación

IRGO (Institut de Recherche en Gestion des Organisations) - EA 4190

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The Value Relevance of Accounting Numbers in Presence of the Equity Method Before and After IFRS 11: Evidence from France

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Este ítem está publicado en

Resumen en inglés

Palabras clave en inglés

URI

DOI

Centros de investigación