This thesis draws from Glaum et al. 2013 and the activity report from ESMA for the financial year 2014 to investigate the level of compliance of the financial statements of public listed companies listed on CAC40 in France, C20 in Denmark, OBX25 in Norway, and OMX SWE in Sweden. The thesis only investigate companies who prepare their financial statements in accordance with the International Financial Reporting Standards - IFRS, more specifically the level of compliance in regards to IAS 36 - impairment of assets and IAS 12 - income taxes. The reason for this particular focus is motivated by the findings of Glaum et al. 2013 and the activity report by ESMA. Glaum et als. article focused on IAS 36 - impairment of assets and IFRS 3 - business combinations and found significant differences on both national and industry level in the sample investigated. Their findings covers the financial years 2005 and 2008, which found no significant changes between those years in the level of compliance. Furthermore, ESMA has released their activity report for the financial year 2014, which sums up the enforcement actions and focus areas of the different members of ESMA. The report from ESMA reveals that there were issues found with IAS 36 - impairment of assets and IAS 12 - income taxes. However, ESMA and its members do not investigate all financial statements of every company within their jurisdiction in the EU. This thesis aims to investigate the level of compliance for the 2014 financial year for all publicly listed companies on CAC40 in France, C20 in Denmark, OBX25 in Norway, and OMX SWE in Sweden. The initial sample size is of 130 companies, which after sorting for companies listed more than once with A- and B- shares, companies listed on two or more of the relevant stock exchanges and those that did not prepare their financial statements in accordance with IFRS gives a sample size of 104 companies. The results shows that there is significant differences on both the country, industry, and company level in regards to compliance and that this might be explained by culture and choice of auditor, amongst other things.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||132|