Cairns (1999) and Street and Gray (2001) report that there is substantial noncompliance
by firms claiming to adopt IAS. If many IAS firms are not in compliance [and compliance has been linked to increased forecast accuracy (Hope 2003a)18], what can the increased forecast accuracy of their earnings be attributed to? Is it really IAS that has helped analysts to improve predictability or some other factors? Is the increase in forecast accuracy of IAS earnings attributable to the ability of IAS to prevent certain types of earnings management that are easier to engage in under national GAAPs? If so, which ones?