In the value relevance literature, there are two basic types of valuation models that have been widely used by previous studies. Pricing model testing the relationship between firm market value and accounting profits and book value of equity. As shown in Equation 1, based on Ohlson (1995), the model expresses the value of the firm as a function of its profits and the book value of its equity. The other type of value relevance assessment model is the yield model, which describes the relationship between stock returns and accounting profits. The relevance of studies on accounting information using the returns-profits association is motivated by the seminal work of Ball and Brown (1968). Then, Easton and Harris (1991) popularized a specific version of the annual return model including both earnings levels and changes. The return model used in this study, based on Easton and Harris (1991), is presented in Equation 2.Chen et al. (2001) discuss two advantages of price models over yield models. When stock markets anticipate components of accounting earnings and incorporate this expectation into initial stock prices, that is, prices determine earnings, return models bias earnings coefficients toward zero. On the other hand, Kothari and Zimmerman (1995) argue that pricing models produce unbiased earnings coefficients because stock prices reflect the cumulative effect of earnings information. Yield models only assess the value relevance of accounting profits, while price models based on Ohlson (1995) show how a company's market value relates to both accounting profits and book value. equity. Additionally, using the Ohlson model will expand the scope of assessing value relevance in both the income statement and balance sheet. However, Kothari and Zimmerman (1995) argue that the return...... middle of paper ...... ernal/NP/rosc/rosc.aspxSamarasekera, N., C. Milicent, and T. Ann. 2012. IFRS and accounting quality: the impact of their application. Business School Working Paper, University of Western Australia. Tsalavoutas, I., A. Paul and L. Evans. 2012. The transition to IFRS and the relevance of the value of financial statements in Greece. The British Accounting Review 44: 262-277. Wan Ismail, AW, AK Khairul, T. Zijl and K. Dunstan. 2013. Earnings quality and adoption of IFRS-based accounting standards: Evidence from an emerging market. Asian Review of Accounting, 21 (1): 53-73. Widodo Lo, E. 2012. The relevance of the value of accounting information in the transition to IAS/IFRS: the case of Indonesia. Jurnal Akuntansi & Manajemen 23 (2): 139-151. Van Tendeloo, B. and A. Vanstraelen. 2005. Earnings management under German GAAP and IFRS. European Accounting Review, 14 (1): 155-180.