Analysis of discretionary accruals, research & development and deferred tax expenses on earnings management : a comparison between U.S. GAAP & IAS/IFRS.

Abstract

This study determines whether U.S. GAAP or IAS/IFRS is more susceptible to earnings management. U.S. GAAP firms are less inclined to smooth income via R&D expenditure, not more inclined to smooth income via discretionary accruals and not less inclined to smooth income via deferred tax expenses vis-?-vis IFRS firms.