The Impact of IFRS Adoption on Value Relevance of Accounting Information: Evidence from in Manufacturing & Hotel Sectors in Sri Lanka

Abstract

Introduction: Accounting Information would be beneficial to the users only if it is relevant to the decision being made. Moreover, to make a more profitable economic decision financial information that present through the financial statements should be comparable with another entity. Because of that International Financial Reporting Standards were adopted in Sri Lanka from 1st of January 2012 as a developing country. Design/ Methodology/ Approach: Data for this study collected from annual audited financial statements and CSE reports for all manufacturing and hotel sector for the accounting period of 12 years from 2007/2008 to 2018/2019. Regression analysis was used to analyze the data. Findings: Based on the analysis, this study found that hotel sector is more value relevance than the manufacturing sector after the IFRS adoption.