Readability of notes to the financial statements and the adoption of IFRS

This study examines the association between the readability of financial disclosures and IFRS adoption in Australia by assessing: (1) the impact of the adoption of IFRS on the readability of Notes to the financial statements in the Australian context; and (2) the potential accounting policies that drive the increased length of the Notes to the financial statements post-IFRS. Results show that financial reports are significantly lengthier, yet are more readable in the post-IFRS period. Further, the length of disclosures in the Summary of Significant Accounting Policies, Financial Instruments and Intangible Assets are significantly longer after the IFRS.