Does the Use of IFRS Have Any Role in Analysts' Forecasts? a Comparative Case between EU Countries and EU Associate Countries

We examine the impact of IFRS reporting flexibility on the presentation of income statements after the adoption of IFRS and whether this affects analysts' forecasts. We find that 44.7 percent (42.02 percent) of first-time IFRS adopters exhibit an average marginal increase (decrease) of 2,584 (-1,253) items in the number of unique items reported. We capture the consequences of reporting flexibility by IFRS by analyzing changes in the number of unique line items reported based on "as reported" income statements. These changes lead to a decrease in the absolute forecast errors of analysts for both rising and falling firms