IFRS Adoption Boosts Accounting Relevance, Challenges Conservatism in Norwegian GAAP
The article looks at how changing accounting rules in Norway affects the quality of financial information provided by companies. By comparing the old Norwegian rules to the new international rules, the researchers found that the new rules make financial information more useful for valuing companies. However, the old rules were better at quickly recognizing losses, which is a more conservative approach. Overall, the new rules provide better information for valuing companies, while the old rules were better for keeping track of a company's financial health.