Empirical Study on performance reporting and the convergence and/or adoption of international accounting standards

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This study investigates the influence of IFRS convergence and/ or adoption, specifically, focusing on performance reporting. As a whole, the following four research questions are examined. First, I examine the usefulness of comprehensive income on post earnings announcement drift (PEAD). Second, in that comprehensive income depends on the fair value, I examines whether fair value accounting amplifies pro-cyclical effects. Third, the performance presentation issues are discussed based on discussion papers and exposure drafts by FASB/IASB and prior literature. Finally, firms’ views for the adoption of IFRS are investigated via a questionnaire survey of listed companies in South Korea and Japan. These results suggest that the adoption of IFRS does not always provide benefit for investors and firms.