Logo
Munich Personal RePEc Archive

A justification for the role of audits?: adoption of International Financial Reporting Standards (IFRS) and jurisdictional analyses (Brazil, China,Japan and South Africa)

Ojo, Marianne (2014): A justification for the role of audits?: adoption of International Financial Reporting Standards (IFRS) and jurisdictional analyses (Brazil, China,Japan and South Africa). Published in: Journal of Social Sciences (COES&RJ-JSS) ISSN (E): 2305-9249 ISSN (P): 2305-9494 Publisher: Centre of Excellence for Scientific & Research Journalism , Vol. 3, No. 4 (October 2014)

This is the latest version of this item.

[thumbnail of MPRA_paper_57826.pdf]
Preview
PDF
MPRA_paper_57826.pdf

Download (216kB) | Preview

Abstract

As well as consolidating on the existing literature on fair value accounting, by way of reference to jurisdictional analyses which include a focus on China, Japan, Brazil, and South Africa, this paper not only highlights why there is need for a re-think of the use of fair values as the primary basis for the implementation of IFRS, but also accentuates the links between systemic risk and information asymmetries – hence the justification for greater focus on information channels as well as disclosure and financial reporting requirements.

Audits, which serve as vital signalling mechanisms in capital markets, have limited roles in many emerging economies than is the case with industrial nations. In contributing to the extant literature on the topic, this paper also aims to address the vital and crucial question relating to whether certain emerging economies are justified in their reluctance to fully embrace audits – based on cost- benefit considerations, as well as other inadequacies relating to fair value measurements.

Furthermore, it will be highlighted that whilst audits may appear to have more limited roles in certain jurisdictions, there appears to be greater willingness to embrace Basel III requirements – and in particular, the Basel III leverage ratios in jurisdictions such as China.

Ultimately the paper also aims to investigate whether there are any justifications or rationales for a jurisdiction's willingness and pace to adopt IFRS, Basel III requirements, in relation to the existing role assumed by audits in such jurisdictions.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.