Telfer Research Seminar Series - Linda Thorne
An Experimental Examination of IFRS 18 Requirement to Relocate non-GAAP Financial Measures to the Audited Notes of the Financial Statements
Deadline: March 3, 2026,
***M.Sc. Students, these seminars can count towards the six mandatory Telfer Research Seminars Series required for your program (MGT 6191/ MGT 6991 / MHS 6991) (4 seminars for MSc Project-based students).***
Linda Thorne, PhD
Effective January 1, 2027, IFRS 18 will require widely used non-GAAP financial measures including MPMs (Management Performance Measures) to be included in the audited notes of the financial statements. This change in accounting standard will influence the location and at the same time will impose the requirement for MPMS to be audited. We use an experiment to examine the effect of this new standard on users at different levels of financial expertise. We hypothesize that the impact of the IFRS 18 standard is explained by the availability bias found in “lower-expertise” users while we posit that the impact on “higher-expertise” users is tempered by the increased confidence they extend to audited financial information. Our results show that “lower-expertise” users rely less on non-GAAP financial measures when they are relocated to the audited notes of the financial statements, while “higher-expertise” users reliance is not significantly altered. Implications for regulators and research are presented in the paper.
About the Speaker
Linda Thorne is a Professor of Accounting in the Schulich School of Business at
