Abstract:

This article discusses one of the most important features of financial statement – its quality under different accounting frameworks. Although there is no sole criterion for measuring such quality, it is largely accepted that it may be assessed indirectly by examining the potential earning management and high-quality financial statements should show no signs of being managed in such a way. This paper presented results of studies on earning management measures related to a large sample of financial statements issued by companies listed on the Warsaw Stock Exchange which transferred their accounting framework from Polish local GAAP to International Financial Reporting Standards (IFRS) during the period 2004-2019. To measure it, the author used well recognized methods as well as a new approach based on xgboost (eXtreme Gradient Boosting).