THE ADOPTION OF IFRS IN PUBLICLY LISTED ENTERPRISES OF HIGH AND MEDIUM CAPITALIZATION AND THE IMPACT OF THE SIZE OF THE AUDIT FIRM IN GREECE

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Abstract

In 2002, developments in the global markets during the past decades have highlighted the need for common accounting standards among companies all around the world so as the financial statements to be comparable. From 2005 onwards the Greek Companies listed on the Athens Exchange was an accounting “revolution” of the 21st century, given the difference in philosophy between the Greek GAAP and the International Accounting Standards-IAS (next, IFRS). This study evaluates the implementation of IFRS on the financial statements of Greek publicly listed companies of high and medium capitalization, which are companies that are included in the FTSE 20 and FTSE 40 indexes of the Athens Stock Exchange-ASE, respectively. Also, for those firms we examined the effect of the size of the audit firm. The research was conducted based on the analysis of thirteen ratios. According to our analysis only few of the ratios have changed significantly. Finally, regarding the impact of the size of the audit firm the results reveal controversy with the present bibliography concerning “Big 4” in comparison with “non-Big 4” firms in Greece.

Keywords: IFRS, IAS, Greek GAAP, Financial Statements

How to cite this paper: Pazarskis, M., Koutoupis, A., Drogalas, G., & Tsakiris, K. (2014). The adoption of IFRS in publicly listed enterprises of high and medium capitalization and the impact of the size of the audit firm in Greece. Corporate Ownership & Control, 11(4-7), 707-716. https://doi.org/10.22495/cocv11i4c7p13