TY - JOUR
T1 - Characteristics of UK firms related to timing of adoption of Statement of Standard Accounting Practice No. 20
AU - Iatridis, George
AU - Joseph, Nathan L.
PY - 2006/9
Y1 - 2006/9
N2 - This study examines whether the timing of adoption of the UK Statement of Standard Accounting Practice No. 20 'Foreign Currency Translation' depended on firms' financial characteristics. Consistent with US studies, we find that early adopters tended to be larger firms, and that variables, such as growth options, profitability, leverage and management payout, have strong predictive power. In general, the decision to adopt the Statement of Standard Accounting Practice No. 20 did not appear to adversely affect the profitability measures or dividend payout. Firms tended to adopt when the adverse economic consequences of the adoption were likely to be minimal. They also appeared to defer the adoption of the standard to influence their financial performance and, hence, to achieve certain corporate financial objectives. © 2006 AFAANZ.
AB - This study examines whether the timing of adoption of the UK Statement of Standard Accounting Practice No. 20 'Foreign Currency Translation' depended on firms' financial characteristics. Consistent with US studies, we find that early adopters tended to be larger firms, and that variables, such as growth options, profitability, leverage and management payout, have strong predictive power. In general, the decision to adopt the Statement of Standard Accounting Practice No. 20 did not appear to adversely affect the profitability measures or dividend payout. Firms tended to adopt when the adverse economic consequences of the adoption were likely to be minimal. They also appeared to defer the adoption of the standard to influence their financial performance and, hence, to achieve certain corporate financial objectives. © 2006 AFAANZ.
KW - timing of adoption
KW - translation gains and losses
KW - UK statement of standard accounting practice No. 20
KW - US SFAS 52
UR - http://www.scopus.com/inward/record.url?scp=33747500303&partnerID=8YFLogxK
UR - http://onlinelibrary.wiley.com/doi/10.1111/j.1467-629X.2006.00176.x/abstract
U2 - 10.1111/j.1467-629X.2006.00176.x
DO - 10.1111/j.1467-629X.2006.00176.x
M3 - Article
SN - 0810-5391
VL - 46
SP - 429
EP - 455
JO - Accounting and Finance
JF - Accounting and Finance
IS - 3
ER -