The Effects of Ifrs on Financial Ratios

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The Effects of IFRS on Financial Ratios:
Early Evidence in Canada

By: ichel Blanchette, François-Éric Racicot M and Jean-Yves Girard

Sponsor: ock Lefebvre, MBA, CFE, FCIS, FCGA R Research and Standards, CGA-Canada Elena Simonova, MA (Economics), MPA Research and Standards, CGA-Canada

About the Authors
Michel Blanchette, FCMA, CA is a professor of Accounting with Université du Québec en Outaouais. François-Éric Racicot is a Professor of Business with Université du Québec en Outaouais, and Jean-Yves Girard, CMA, is an Industrial Analysis and Development Officer at Industry Canada, Government of Canada. The authors thank Diane Bigras, Denis Cormier and Thérèse Roy for their comments on an earlier version.
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Concluding Remarks and Recommendations ................................................................. 51 References ....................................................................................................................... 55

The Effects of IFRS on Financial Ratios: Early Evidence in Canada

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List of Tables
Table 1 – Fair value accounting in IFRS ................................................................................. 16 Table 2 – Elements of IFRS 1 not representative of ongoing application of IFRSs ................ 20 Table 3 – Selected financial ratios............................................................................................ 22 Table 4 – IFRS transition disclosures in MD&A of Canadian companies, 2009 .................... 29 Table 5 – Expectations of Canadian senior financial executives on the adoption of IFRS ...... 30 Table 6 – Selection of companies to form the data set ............................................................ 33 Table 7 – Breakdown of companies in the sample ................................................................... 34 Table 8 – Descriptive statistics of financial statements included in the sample ....................... 36 Table 9 – Descriptive statistics of financial ratios
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