<p dir="ltr">We examined the joint and relative value relevance of book value of equity (BVE) and earnings before (2015–2016), after (2017–2018) and during the comparative year (2016) of mandatory adoption of International Financial Reporting Standards (IFRS) in Saudi Arabia. Results show that the accounting information is jointly value relevant (R<sup>2</sup>), with no significant change between accounting information prepared under Saudi GAAP and IFRS. However, we found a positive change in the relative value relevance of the BVE after IFRS implementation, mainly related to the introduction of fair value measurement. Differences in value relevance were found across variances in company characteristics.</p>
Publication Date
2022-06-01Journal
Accounting and FinanceVolume
62Issue
2Pagination
40p. (p. 2839-2878)Publisher
WileyISSN
0810-5391Rights Statement
© 2021 Accounting and Finance Association of Australia and New Zealand
This is the peer reviewed version of the following article: Alomair A; Farley A & Yang HH (2022). The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia. Accounting and Finance, 62(2), 2839-2878, which has been published in final form at http://doi.org/10.1111/acfi.12902. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
