Relevance
Relevant information helps people make better what?
Decisions
Comparability helps users see similarities and differences between what?
Financial Statements
Ghouma et al. (2023) analyze 337 firms drawn from 17 European countries listed on this major European equity index family
STOXX
IFRS requires companies to give more detailed and complete __________ in their financial reports
Disclosures
Saudi evidence shows that, after IFRS adoption, analysts’ ________ bias decreased.
Optimism
Market values
IFRS comparability improved even more in countries with strong what
Enforcement
Who benefits from information asymmetry?
The party with an informational advantage
IFRS 8 makes companies report financial information for each of these parts of the business
Segments
Horton and colleagues used this type of statistical model to test whether IFRS adoption improves analyst forecasts
regression
Analysts made fewer mistakes after IFRS. Their accuracy improved by about this percent
15%
Greater comparability reduces these for investors analyzing firms
Costs
When information asymmetry goes down, investors feel more ___________ investing
Comfortable
IFRS 7 and IFRS 9 focus on giving more detailed information about this type of company exposure
Risk
After firms switch from local GAAP to IFRS, analysts’ earnings forecasts become more ________
accurate
IFRS made earnings easier for investors to _______ in the future
Predict
When IFRS reduces information asymmetry, it lowers this cost for companies.
Cost of Equity/Capital
After adopting IFRS, Ghana’s disclosure quality score increased from about 60% to over this percent
87%
Chicago research finds that IFRS adoption attracts more of these professionals, especially foreign ones, strengthening market information
These became more informative under IFRS, helping stock returns anticipate earnings earlier
Abnormal accruals
After IFRS adoption, this key performance metric became closer to U.S. GAAP amounts
Earnings
Studies show that IFRS adoption narrows this market measure and reduces adverse selection
Bid-ask spread
The new IFRS 9 credit loss model helps companies recognize losses before bad events happen. What is this type of information called?
Forward-looking information
Because more accurate forecasts help investors make better buy-hold-sell choices, they provide stronger decision-________ for users of the FS
Usefulness