| Abstract |
This study investigates the financial statement impact of adopting International Financial Reporting Standards (IFRS) using a unique set of manually collected sample of Korean firms who have early-adopted IFRS. We collect approximately 90 reconciliation items and document their respective influ-ence on asset, liability, equity and net income. Applying IFRS, asset, liability, equity and net income values all decrease. In terms of value relevance, IFRS equity values are not more value relevant than Korean GAAP (K-GAAP) values while IFRS net income values are less value relevant than K-GAAP values. In regards to earnings management, we are unable to find any significant differences between IFRS and K-GAAP. Considering that K-GAAP resembles the U.S. GAAP in many aspects, we offer some implications for IFRS adoption in the U.S. |