... of 20-F reconciliation as an information loss and hence demand a higher cost of debt to compensate for increased risk. Specifically, the reconciliation of earnings and shareholders' equity to the U.S. GAAP provides bondholders information to compare the financial performance of foreign bond issuers...

...Marc Cussatt; Li Huang; Troy J. Pollard ABSTRACT This study examines whether accounting quality changed for a diverse set of German firms that were required to switch accounting standards from U.S. Generally Accepted Accounting Principles (U.S. GAAP) to International Financial Reporting Standards...

... of the Form 20-F reconciliation as a way to reduce the differences between local GAAP and U.S. GAAP to satisfy U.S. investors, and also to avoid greater scrutiny by the SEC ( Bradshaw et al. 2004 ; Lang et al. 2006 ; Kang et al. 2012 ). Foreign cross-listed firms with IFRS adoption (i.e., eliminating...

... U.S. GAAP and IFRS principles, especially in terms of the guidelines surrounding business combinations and the concept of control. Now, given the similarity of the U.S. GAAP and IFRS equity investment accounting standards and their more recent emphasis on the control concept, one would not expect...