A Perspective on Association Between International Financial Reporting Standards and Earnings Quality of Turkish Banking Sector

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A Perspective on Association Between International Financial Reporting Standards and Earnings Quality of Turkish Banking Sector

Journal Title: Muhasebe ve Finansman Dergisi - Year 2017, Vol 19, Issue 76

Abstract

Banks are the among the most important institutions of the financial system. Bank financial statements are used by many users for many reasons such as the number of investors and customers and the power of their activities affecting the economies of the country/countries. The users of the financial statements expects high quality reporting from the preparers. Earnings management and capital management practices adversely affect the quality of the financial statement. In this study, impact of the use of International Financial Reporting Standards, which aims to increase the quality and comparability levels of the financial statements, on the earnings and capital management practices is analyzed for the Turkish banking system. According to the results, banks are using loan loss provisions for earnings and capital management purposes. Significant decrease has been observed for earnings management activities for post–IFRS period, however IFRS resulted in no significant change for capital management activities.

Authors and Affiliations

Merve Acar, Burcu Gürol

Keywords

Banks Earnings Management Capital Management Bank Financial Statements IFRS Financial Statements Quality Accounting Quality Loan Loss Provisions

EP ID EP238078
DOI -
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