The Clevo case: a timeline of IFRS "Reluctance"

Yu-Lin Hsu, Gavin C. Reid

Research output: Contribution to journalArticlepeer-review


There is an ongoing policy debate over whether the adoption of IFRS should be mandatory. All Taiwanese listed companies had to adopt IFRS from 2013, but they could choose to adopt earlier in 2012. Surprisingly, given cross-national comparisons, not one Taiwanese company adopted early. This is an extreme example of policy "reluctance." We explore this unique setting, by analyzing a leading reluctant Taiwanese company, Clevo. It was widely known as a potential early adopter but withdrew at the last minute. This paper illustrates how a firm which perceived net benefits would be incentivized to adopt IFRS early, but then how uncertainties in regulations could stall such intentions. Through discussing how the accounting regulators responded to this firm's actions (and vice versa), this paper helps us to understand better the prerequisites for effective policy design and corporate decision-making in the context of IFRS adoption and implementation. This paper, using a qualitative research method, will also add to exiting IFRS literature which mainly focuses on quantitative analysis.
Original languageEnglish
Pages (from-to)65-70
Number of pages6
JournalJournal of Corporate Accounting & Finance
Issue number4
Early online date30 Jul 2021
Publication statusPublished - 31 Oct 2021


  • fair value
  • IFRS
  • investment properties
  • policy reluctance
  • regulations
  • regulatory change


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