Abstract
We provide comprehensive evidence concerning the impact of IFRS 8 on the quality of segmental information disclosed in the annual reports of the largest companies in the European Union. We also assess the impact of using fifteen alternative proxies of segment information quality divided into four dimensions (extensiveness, fineness, variability, and consistency). The empirical results reveal that changes, and the strength of these changes, following IFRS 8 are dependent upon the proxy used. Our results have substantial implications for both policy makers and academic researchers, which are related to the impact of the principle-based IFRS 8 and the measurement of segment information quality.
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Notes
It applies to financial years starting on or after January 1, 2009.
The total number of missing observations is 12, of which six observations are missing. The remaining six observations are unavailable due to that two companies changed to multi and one firm changed to single after the adoption of IFRS 8.
These three items were excluded because they are not part of the secondary information and to use the score of SSQ to explain the impact of IFRS 8 on the quantity of secondary segment information given the heated debate on the impact of IFRS 8 on geographical disclosures.
These differences explained by the samples composition. For example, the findings show that the level of consistency is 95% for German firms (not tabulated).
The findings using non-parametric correlation matrix provide the same conclusions. In addition, the findings remain the same when we divide the sample into two periods (Pre and Post IFRS 8).
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Appendix 1
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Appendix 2
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Aboud, A., Roberts, C. & Hussainey, K. The impact of IFRS 8 on segment information quality in the European Union: a multi-dimensional analysis. Int J Discl Gov 16, 100–115 (2019). https://doi.org/10.1057/s41310-019-00059-9
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DOI: https://doi.org/10.1057/s41310-019-00059-9