Value Relevance of R&D Expenditure Before and after IFRS Mandatory Implementation : Evidence from France

The adoption of International Accounting Standards (IAS/IFRS) by an important and growing number of countries is one of the most important changes in the international accounting field. In France, there is a real change in the firm's accounting practice related to the intangibles, and in particular accounting treatment for research and development 5 R&D) costs, following the adoption of international standards since January 2005. Consequently, the aim of our research is to analyze the impact of the adoption of International Accounting Standards (IAS/IFRS) on the value relevance of R&D expenditures based on a sample of 36 French companies (SBF120). The main results indicate that adopting IAS/IFRS did not affect the value relevance of expended R&D, whereas, applying the international standards positively affects the value relevance of capitalized R&D