Hypotheses |
Approved Basic hypotheses/ Alternative hypotheses |
Conclusions |
First Hypothesis |
Approved Alternative Hypothesis:The implementation of IAS/IFRS links with a high variability of change in net income. |
This means that in the financial statements prepared by IAS entities does not have earnings management, so the accounting quality is high. |
Second Hypothesis |
Approved Basic Hypothesis:The implementation of IAS/IFRS brings a lower ratio between the variability of change in net income to the variability of change in cash flows. |
This means that in the financial statements prepared by IAS entities, managers use accruals to manage earnings so the accounting quality is low. |
Third Hypothesis |
Approved Alternative Hypotheses:The implementation of IAS/IFRS relies on a low management of accruals from the company. |
This means that in the financial statements prepared by IAS entities, managers do not use accruals to manage earnings so the accounting quality is high. |