Readability of Form 20-Fs: IFRS versus U.S. GAAP, Common versus Code Law, Pre- versus Post–IFRS Adoption

• In Event: Concurrent Session 3.3: IFRS

Abstract

We examine and find that Form 20-Fs filed with the SEC by American Depositary Receipts are difficult to read, requiring readers to have over 18 years of education. Form 20-Fs prepared in accordance with IFRS are a little harder to read than those prepared in accordance with U.S. GAAPs; Common law firms have more readable statements than Code law firms, but Form 20-Fs from Common law firms reporting using IFRS have harder to read statements than Code law firms reporting using U.S. GAAP; and readability of Form 20-Fs is not different between the pre- and post-IFRS (2007) periods.

Authors

• Li Li Eng, Missouri University of Science and Technology

• Li Sun, Ball State University