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Accounting Quality In Albania (International Accounting Standard Entities)

Table 4:

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.
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