IFRS 의무채택이 이익유연화에 미치는 효과

This study examines the effects of the adoption of IFRS on managerial discretion by comparing the previous K-GAAP period in Korea. In particular, we compare the magnitude of income smoothing between the IFRS and K-GAAP period. Theoretically, the principle-based accounting standards reduce managerial discretion, so income smoothing behavior can be reduced. In practice, however, income smoothing behavior may increase because principal-based accounting standards may further increase managerial discretion due to deficient implementation guidance and ambiguity of principle. For this reason, this study empirically investigates the effect of IFRS adoption on the discretion of managers using income smoothing. As a result, we find that the magnitude of earnings smoothing during the IFRS adoption period is higher than that of the previous K-GAAP period. Our results show robustness in alternative analyzes using various comparison periods and financial statement types. Overall, the results of this study suggest that management's discretion during the IFRS adoption period has increased more than the past K-GAAP period. These results indicate that some companies tend to exploit for opportunistic purposes using the ambiguity of the practical application of IFRS without applying accounting methods consistent with economic realities in accordance with principle-based accounting standards.