IFRS 13 Convergence on Earnings Management of Listed Real Estate Companies in China

On July 1 2014, China started implementing Accounting Standards for Business Enterprises39 (ASBE39)—Fair Value Measurement, which converged with IFRS13. This study examines whether the convergence of ASBE39 to International Financial Reporting Standards13 (IFRS13) impacts the earnings management of listed real estate companies. This study utilizes data from 87 real estate companies listed on China’s A—share market spanning the period from 2009 to 2020. This study employs absolute discretionary accruals as a metric to measure earnings management. This paper demonstrates that the convergence to IFRS 13 leads to a negative impact on earnings management within Chinese publicly listed real estate firms. The findings indicate that convergence can curb earnings management.