Analysing brokers' expertise : did analysts fully anticipate the impact of IFRS adoption on earnings ? The European evidence

Since 2005, all European Union listed firms comply with IFRS. The resulting mandatory changes in accounting methods have substantially affected reported earnings. Using the factSet/JCF database that collects 2005 earnings forecast based on both IFRS and local GAAP for a set of European listed companies, this research document whether financial analysts were sophisticated enough to anticipate the impact of the new accounting rules on the determination of earnings.