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The Impact of Adoption of IFRS on the Management of Profit Performance
The purpose of this study is to examine the effect of International Financial Reporting Standards (IFRS) adoption on the frequency of earnings management (earnings manipulation). The empirical analysis employs the linear regression model which includes a dependent variable (discretionary accruals), independent variables (accounting standards and audit quality) and some control variables. The Modified Jones Model is applied to calculate the amount of discretionary accruals as a measure of earnings management. The sample used for the analysis contains 361 observations of Russian public companies from various industries during the period from 2010 to 2015. The obtained results showed that earnings manipulation is intensified after IFRS implementation.