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Effect of IFRS` Adoption on Financial Performance
The primary purpose of this research paper is to examine the effect of International Financial Reporting Standards (IFRS) implementation on the level of misstatement of financial indicators, namely net profit performance, based on accruals approach. The empirical analysis employs a linear regression model with discretionary accruals as a dependent variable, applicable accounting standards as an explanatory variable and several control variables which were introduced to test proposed hypotheses. The analyzed sample contains 365 observations of Russian public companies from various industries during the period from 2011 to 2016. It is anticipated to obtain accurate result showing earnings management escalation after IFRS adoption.