The impact of national accounting standards on the quality of financial reporting in Tehran stack Exchange: Earning Persistence approach

Subject Areas : Management Accounting

هاشم نیکومرام ¹ , زاد اله فتحی ²

1 - ندارد
2 - مسئول مکاتبات

Received: 2011-01-10 Accepted : 2011-05-05 Published : 2011-03-21

Keywords: accounting standards, Earnings Quality, Earnings Persistence, qualitative&#x0D, &#x0D, characteristics , Conceptual framework of financ,

Abstract :

This study has attempted to evaluate the effect of Iranian accounting standards onearnings persistence. In fact, earnings persistence is one of the methods of measuringearning quality. To do so, 80 active corporations from Tehran stock exchange werechosen as the Earnings persistence of these participants was studied in two timeperiod. In the first period, which was happened "during 1994-1998" these participants.In that period, there was no mandatory to present financial statement based on Iranianaccounting standards. In the second period "during 1999-2004" it was mandatory topresent financial statement based on national accounting standards. To realize whetherthe null hypothesis is true or not, correlation coefficient Wald statistics wasimplemented to analyze the data. The results show that there is not a significantdifference between the earnings persistence of the participants on before and after theapplication of Iranian accounting standards. That is, accounting standards are noteffective on earnings persistence.