One study compared characteristics of accounting amounts for companies that adopted IRRS to a matched sample of companies that did not and found that the former evidenced less earnings management, more timely loss recognition, and more value relevance of accounting amounts than did the latter. Reporting entities adopting IFRS had significantly higher variance of the change in net income (signifying less effort to smooth earnings), a higher ratio of the variances of the change in net income and change in cash flows, and a lower frequency of small positive net income (a sign that loss-making companies did not book questionable adjustments in order to create minimally positive earnings).