2022 - Franco Angeli
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The role of the Big Four audit firms and the legal system in non-GAAP comparability
79-116 p.
- The purpose of this paper is to investigate whether the firms with the same Big Four audit firm and from the same legal system disclose more comparable nonGAAP measures. Using 23,436 pairs of European firms, we handcollected information on the nonGAAP measures disclosed in the statement of comprehensive income. The results showed that the firms with the same Big Four audit firm or from the same legal system are positively and significantly associated with nonGAAP comparability. Our work adds to the studies on accounting comparability. Furthermore, it provides fresh insights that support the latest IASB activity on the Primary Financial Statement project, under which the standard setter has endorsed ED/2019/7 General Presentation and Disclosures. [Publisher's text].
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Information
ISSN: 2036-6779
KEYWORDS
- financial statement comparability, Big Four audit firms, legal system, nonGAAP measures, IAS 1.
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In this issue
- GAAP-compliant versus non-GAAP voluntary disclosures relative to critical reporting dates
- Financial reporting and book-tax conformity : a review of the issues
- The role of the Big Four audit firms and the legal system in non-GAAP comparability
- The role of Key Performance Indicators as a performance management tool in implementing corporate strategies : a critical review of the literature
- Dialogue with standard setters : climate change and Financial reporting
- Book Review : Lorenzo Simoni, Business models and corporate reporting : defining the platform to illustrate value creation, Routledge, 2022 by Sam Rawsthorne
- 2021 Reviewers
