The International Financial Reporting Standard (IFRS)s Conceptual Framework and the Financial Accounting Standards Board (FASB)s Conceptual Framework state that future cash flows prediction is one of the key objectives of financial reporting. Atqa, Lee and Mohd-Saleh (2019) investigated whether the adoption of IFRS (or locally known as the Malaysian Financial Reporting Standard (MFRS)) in Malaysia since the year 2006 improves the predictability of future cash flows of Malaysian public listed firms from the institutional perspective. The results show that the cash flows under IFRS regime significantly predict future operating cash flows (p.851).

The following Table 4 (p. 863) extracted from Atqa, Lee and Mohd-Saleh (2019). Has IFRSs Improves Predictions of Future Cash Flows? Evidence from Malaysia. International Journal of Business and Society, 20(2), 851-869.

Adopted from Atqa, Lee and Mohd-Saleh (2019) p.863.

1. Interpret and justify with relevant citations for the results reported in the Table 4 above.

(10 marks)

Table 4: Estimation Result Model 1 Notes: ****** indicate significantly different from zero at the 0.10,0.05 and 0.01 level (two-tailed), respectively Table 4: Estimation Result Model 1 Notes: ****** indicate significantly different from zero at the 0.10,0.05 and 0.01 level (two-tailed), respectively