The Effect of the International Accounting Standards on the Related Party Transactions Disclosure | Science Publications

American Journal of Applied Sciences

Stauropoulos Antonios¹  Arsenos Panagiotis¹  Samaras Ioannis¹ 

关键词: International Financial Reporting Standards (IFRS);    value relevance;    Related Party Transactions (RPTs);    hypotheses development;    GAAP;    International Accounting Standards Board (IASB);    earnings management;    Return-On-Assets (ROA);    Earnings Per Share (EPS);   

DOI  :  10.3844/ajassp.2011.156.163

学科分类：自然科学（综合）

来源: Science Publications

【 摘 要 】

Problem statement: Several recent North American corporate scandals have broughtattention to the potential for accounting manipulations associated with Related Party Transactions(RPTs), which have lead to a decline in perceived earnings quality. We examine the value relevance ofdisclosed RPTs in Greek corporations. Approach: We focus on two types of RPTs: sales of goods andsales of assets, using a value relevance approach. Results: From 2002-2007, we find that the reportedearnings of firms selling goods or assets to related parties exhibit a lower valuation coefficient thanthose of firms in Greece without such transactions. This result is not observed during 2005-2007 after anew fair value measurement rule for RPTs came into effect. Conclusion: Our evidence suggests thatthe new RPT regulation in Greece is perceived to be effective at reducing the potential misuse of RPTsfor earnings management purposes. Since RPTs have been the subject of numerous scandals in NorthAmerica, our evidence from the Greek stock markets suggests that new RPT accounting standardscould prove an efficient solution to this issue.

【 授权许可】

Unknown