IFRS Convergence Research Articles

Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence

Based on a sample of 6485 firms listed on the Chinese Shanghai and Shenzhen A-shares between 2017 and 2021, the effect of managers' psychological deviation on irrational investment is empirically tested. The higher the managers’ confidence, the lower the investment efficiency. The level of irrational investment in listed companies increases with the degree of managers’ risk appetite. The improvement of disclosure quality of enterprises after IFRS convergence in China can weaken irrational investment triggered by managers' overconfidence. The information disclosure quality by companies can manage the irrational investment behavior that is exacerbated by the high degree of managers’ risk appetite.

Industry Type, Profitability and Convergence of IFRS to Audit Fees

This research aims to determine the relationship between industry type, profitability, and IFRS convergence with audit fees. This research is associative research that connects each research variable using data taken directly online at the Indonesian Stock Exchange. This research collects data from the annual reports of basic industrial and chemical manufacturing companies listed on the Indonesian Stock Exchange for 2020-2022, with purposive sampling being the technique used in sampling. A total of 27 companies were respondents with an observation period of 3 years. Quantitative methods were used to analyze this research by processing data using the Statistical Program for Special Science (SPSS). The research results show that industry type has a relationship with audit fees, while profitability has no relationship with audit fees, and the same as industry type, IFRS convergence has a relationship with audit fees.

IFRS convergence and earnings management in India: a mixed method approach

IFRS convergence and earnings management in India: a mixed method approach

IFRS convergence and accounting quality: A comparative analysis of global and Indian corporate

IFRS convergence and accounting quality: A comparative analysis of global and Indian corporate

Implementasi Akuntansi Kombinasi Bisnis Sesudah Penerapan PSAK 22 dan Konvergensi IFRS pada PT Telekomunikasi Indonesia

. This research was conducted to provide in-depth insight into how PT Telecom Indonesia manages implementation of IFRS 22 and IFRS convergence in the context of business combination accounting. Adoption of PSAK 22, business combinations recorded using the acquisition method. The transferred remuneration is calculated on the basis of its fair value, which is the difference between the fair value of the transferred asset, the assumed liability, and the equity instrument granted to the acquired party in exchange for control. The combination of business and IFRS convergence has a correlation because it improves the effectiveness of information in the financial statements of PT Telekomunikasi Indonesia Tbk. This research uses the method of literature review or literature reviews to obtain research material. . This research was conducted to provide in-depth insight into how PT Telecom Indonesia manages implementation of IFRS 22 and IFRS convergence in the context of business combination accounting. Adoption of PSAK 22, business combinations recorded using the acquisition method. The transferred remuneration is calculated on the basis of its fair value, which is the difference between the fair value of the transferred asset, the assumed liability, and the equity instrument granted to the acquired party in exchange for control. The combination of business and IFRS convergence has a correlation because it improves the effectiveness of information in the financial statements of PT Telekomunikasi Indonesia Tbk. This research uses the method of literature review or literature reviews to obtain research material.

Contingency perspective: company characteristics, risk management voluntary disclosure, and company performance

This study aims to examine the direct and indirect effect of firm characteristic on company performance through voluntary risk management disclosure based on contingency factors. This study uses secondary data with a content analysis approach to the acquisition of risk management disclosure data based on annual report from sample of companies listed on the Indonesia Stock Exchange in 2017-2019 after the IFRS convergence was implemented in Indonesia. Currently, the regulator only requires disclosures of financial risk management compared to non-financial risk disclosures. Therefore, this study is expected to provide empirical evidence regarding the importance of voluntary risk management disclosure on firm performance has contingent relationship with considering external factors, consists of (1) business uncertainty, and (2) dynamic environment. The implication of this research is expected to become a consideration for regulators and entities to disclose non-financial information in the company's annual report because it can affect company performance amidst the uncertain business environment in developing countries such as Indonesia

Analisis Akuntansi Kombinasi Bisnis Dengan Konvergensi Ifrs Pada Laporan Keuangan PT Garuda Indonesia Persero (Tbk)

This study aims to analyze business combination accounting with IFRS convergence in the financial statements of PT Garuda Indonesia Persero (Tbk). The research method used in this research is qualitative method, with content analysis as the data analysis technique. This research is based on the results of a review of the PT Garuda Indonesia Persero (Tbk) financial statement in 2010, 2011, 2015 and 2018, which were taken from the company's official website. The results of the study show that PT Garuda Indonesia Persero (Tbk) has complied in applying the PSAK 22 business combination accounting standards (revisions 2010, 2015 and 2018) which have converged well with IFRS in its financial statements. This research can provide an important contribution for the stakeholders to assess company compliance with applicable accounting reporting standards.

Does the Level of Economic Development Affect IFRS Information Comparability?

This study examines whether levels of economic development affect IFRS information comparability. Since the extant literature indicates that accounting information comparability is also affected by code law versus common law legal origins, we hold the legal system variable constant by focusing on a single code law legal jurisdiction, and document significant evidence on the effect of variations in economic development across regions in China on IFRS information comparability. Specifically, we find comparability is higher for firms from more developed regions in the pre-IFRS convergence period, but not in the post-IFRS convergence periods; and the magnitude of improvement in information comparability upon IFRS convergence is greater for firms from less developed regions. Taken together, our findings suggest that firms from less developed regions in a code law legal jurisdiction actually have more to gain from IFRS convergence.

PENGARUH DEWAN KOMISARIS INDEPENDEN KOMPLEKSITAS PERUSAHAAN DAN KONVERGENSI IFRS TERHADAP FEE AUDIT PADA PERUSAHAAN PROPERTY AND REAL ESTATE YANG TERDAFTAR DI BEI

This study aims to determine the effect of independent commissioners, company complexity and IFRS convergence on audit fees at Property and Real Estate companies listed on the Indonesian Stock Exchange (IDX). By using the purposive sampling method, a sample of 6 companies can be obtained. The data analysis method used is the classical assumption test such as normality test, multicollinearity test, heteroscedasticity test and autocorrelation test and hypothesis testing such as multiple linear regression test, t test, F test, and R2 test using SPSS as an analytical tool. The results of the multiple linear regression equation Y= 15,679-0.676X1+0.170X2-0.036X3. The constant of 15,679 is the value of the audit fee at the Property and Real Estate company which is constant (fixed), the regression coefficient of the independent board of commissioners variable, and the IFRS convergence is negative for the audit fee, while the complexity of the company is positive for the audit fee. Partially, independent board of commissioners, company complexity and IFRS convergence have no significant effect on audit fees. And simultaneously independent board of commissioners, company complexity and IFRS convergence show no significant effect on audit fees. From the coefficient of determination test results obtained a value of 22.1% while the remaining 77.9% is influenced by other variables not included in this study.

Accounting Standards Comparison between China and Russia

Both Chinese and Russian accounting standards follow the IFRS convergence route, despite there being a difference in the degree of international convergence between the two countries. The article examines the specific criteria for financial statement presentation in China and Russia and discovers discrepancies in the basic requirements for financial statement presentation, financial statement composition, and information in notes to financial statements in both countries. The comparison in this article is used to provide theoretical guidelines for reciprocal economic investment between the two countries.

Analisis Faktor-Faktor Yang Berpengaruh Pada Keterlambatan Penyampaian Hasil Audit

<p class="15bIsiAbstractBInggris">Audited financial reports must be published by companies registered and traded on the stock exchange market on the Indonesia Stock Exchange. The length of time the audit of financial statements is carried out by the auditor sometimes makes the audited financial statements late for publication or commonly called audit delay. This study aims to provide empirical evidence regarding the effect of profitability, auditor gender, IFRS convergence and reputation KAP on audit delay. The research was conducted on banking sub-sector listed on the Indonesia Stock Exchange 2016-2017 period. The research method used a quantitative approach. The source of this research used secondary data sourced from the annual report of various sector companies in the banking sub-sector listed on the Indonesia Stock Exchange. The research data was taken using purposive sampling. The analysis technique is done by classical assumption test, multiple linear regression. The results of the study found that Auditor gender hasn`t significant negative effect on audit delay. IFRS convergence hasn`t significant negative effect on audit delay. Reputation KAP has a significant negative effect on audit delay. The implication of the research results is that companies going public and listed on the IDX can appoint a KAP with a good reputation and it is recommended that the implementation of IFRS convergence is carried out earlier.</p>

Pengaruh Corporate Governance Terhadap Tingkat Kepatuhan Mandatory Disclosure Konvergensi IFRS

This study aims to determine the influence of corporate governance on compliance level of Mandatory Disclosure IFRS Convergence. Data obtained from the Indonesia Stock Exchange (IDX) through the website www.idx.co.id in the form of annual reports presented in manufacturing companies in 2020-2021. Pursuant to purposive sampling criterion 150 company used as sample in this research. Hypothesis test in this research using multiple linear regression method. The results showed that the number of members of the board of commissioners has no effect on the compliance level mandatory disclosure IFRS convergence is indicated by the value of regression coefficient of 0.002 with significance of 0.615> α 0.05. Ownership of dispersion has an effect on compliance mandatory disclosure level of IFRS convergence shown by regression coefficient value equal to 0,043 with significance equal to 0,044 <α 0,05. The number of board meetings has no effect on mandatory disclosure level of IFRS convergence indicated by regression coefficient value of 0.002 with significance of 0,558> α 0,05. The number of audit committees has an influence on compliance mandatory disclosure level IFRS convergence is indicated by regression coefficient value of 0.033 with significance of 0.002 <α 0.05.

Determinant of Earnings Quality

The quality of earnings indicates the current or future capability of the company to support the decisions made by managing board and other stakeholders. This research have to goal to examine the determinant of earnings quality in Indonesia, including: IFRS convergence, accounting disclosures, and audit committees. Data were acquired from official website in period of 2016-2018 and number of data was 212 observation data. Method of analysis involved regression test and classical assumption test. Result of research showed that the audit committee had a positive effect on earnings quality, while the convergence of IFRS and accounting disclosure cannot affect earnings quality. Research model was tested using control variables, respectively leverage, liquidity and company size. The test found that leverage is the only control variable that affects earnings quality. Information in financial statements is not the most important information to investors. Audit committee and creditor contribution play more important role in decisions regarding earnings quality.

IFRS Convergence and Disclosure Quality: The Role of Audit Quality Moderation (Study on Multinational Companies in Indonesia)

IFRS convergence was initiated through the agreement of the G20 leadership meeting in Washington at 2008. The meeting agreed to use IFRS as an international accounting standard. Adopting IFRS as a single global accounting standard can make Indonesian companies ready and able to transact across countries, or mergers and acquisitions. IFRS supports the readiness of industry in Indonesia to be competitive at the global level. Financial statements based on IFRS produce information more relevant, accurate and more comparable. IFRS can produce valid information on company assets, liabilities, equity, income and expenses. Management will have a high level of accountability to run the company. This study examined the role of audit quality as moderating variable in the relationship between the IFRS convergence and disclosure quality, and studies on multinational companies listed the Indonesian Stock Exchange 2012-2018 period. The research used 63 multinational companies and it tested using the SPSS 25 statistical test tool. The research has proven the effect of IFRS convergence on disclosure quality, and the role of audit quality in strengthening the relationship between the two variables. IFRS convergence applied requires the role of external audit to provide assurance or assurance that the financial statements presented have complied with the standards for preparing financial statements and are fairly presented without material errors.

Faktor-Faktor Yang Memengaruhi Share Price Sebelum Dan Setelah Periode Konvergensi IFRS

This study aims to analyze the value relevance of accounting information consisting of earnings per share, book value of equity per share, operating cash flow per share, leverage, and dividend payout ratio that affect the share price before and after the IFRS convergence on manufacturing companies listed in the Indonesia Stock Exchange period 2005−2018. The research sample consisted of seven manufacturing companies and multiple linear regression analysis used in this study with EViews 11 version program. The test results concluded earnings per share does not have a significant effect on share price, book value of equity per share does not have a significant effect on share price, operating cash flow per share has a significant positive effect on share price with its value relevance increases after IFRS convergence period, leverage does not have a significant effect on share price, and dividend payout ratio has a significant positive effect on the share price with its value relevance decreases after the IFRS convergence period. The implication of this study is the need to increase value relevance of accounting information, namely operating cash flow per share and dividend payout ratio to help stakeholders, especially investors, in making investment decision which will provide a good signal for investors.

KONVERGENSI IFRS DAN PELUANG PRAKTIK MANAJEMEN LABA DI INDONESIA: SEBUAH LITERATUR REVIEW

Earnings management practices result in the fact that the economic conditions in the company's financial statements are not actually presented so that the profits that are expected to provide information to support decision making are doubtful. The existence of IFRS encourages managers to perform high-quality financial reporting, resulting in high-quality earnings as well. This paper aims to analyze the opportunities for earnings management practices after IFRS convergence in Indonesia. The secondary data used in this literature study were obtained from empirical studies on the convergence of IFRS and earnings management in Indonesia. The results of the analysis show that the opportunity for earnings management practices will exist, both after the convergence of IFRS, so the importance of supervision carried out by investors to obtain reliable financial information as a basis for decision making.

RELEVANSI LAPORAN KEUANGAN PADA PERUSAHAAN-PERUSAHAAN MANUFAKTUR TERDAFTAR DI BURSA EFEK INDONESIA

This study aims to test whether there is a higher value relevance of financial ratios after the IFRS convergence than before the IFRS convergence and whether there is a difference in the value relevance of financial ratios in explaining stock prices between the periods before and after the IFRS convergence.The sample in this study was manufacturing companies listed on the Indonesia Stock Exchange in 2011-2012. Using the purposive sampling technique, 94 companies were the samples of this study. The results show that there is no value relevance of the value of the liquidity and solvency ratios after IFRS which is higher than before IFRS and there is a value relevance of the value of the profitability ratio after IFRS which is higher than before IFRS. The results also show that there is a difference in the effect of the relevance of financial ratios in explaining stock prices after the application of IFRS compared to before the application of IFRS.

Determinants of corporate social disclosure in Saudi Arabia: The role of social values and IFRS convergence

This study investigates whether Corporate Social Disclosure (CSD) is affected by IFRS convergence and social value in a country that has strict societal norms (Saudi Arabia). Using a sample of 292 Saudi manufacturing and utilities firms listed on the Saudi Capital Market during the period of 2015-2019, the study finds that IFRS convergence is not related to the CSD of the Saudi manufacturing and utilities firms. On the other hand, social values (as modeled by adopting CSD as a strategic objective) are significantly related to CSD. These results provide evidence supporting the view that CSD is influenced by social values rather than the change in the corporate disclosure environment in countries that exhibit strong conformity to societal values, such as Saudi Arabia. Overall, the current study adds to an understanding of the factors that determine CSD outside the shareholder-stakeholder orientation model.

The Impact of Institutional Factors and IFRS on the Value Relevance of Accounting Information: Evidence from Chinese Ah- Shares

This study investigates whether institutional factors affect the value relevance of accounting information in Chinese cross-listed firms during the years from 2000 to 2013. Specifically, the study concentrates on whether the IFRS convergence is associated with incremental improvement on the value relevance of accounting information, and how institutional factors affect the value relevance of these cross-listed firms. We find that the IFRS convergence could indeed promote higher quality of accounting information, as the value relevance increases when firms switched from complying with the China GAAP to the IFRS-based accounting standards. Besides, the impact of institutional factors on the value relevance has been proved to be varied between Mainland China and Hong Kong stock market. This result suggests that regions with a strong and sound institutional framework and thus earning higher scores in the Worldwide Governance Indicators further support and enhance the neutrality of accounting information. Accordingly, such regions would correspond to a lower interventionist power in the financial reporting system and would therefore attract more investments.

Does IFRS convergence bring improvement in firm performance? An empirical analysis

ABSTRACT This paper investigates the impact of IFRS adoption on Chinese listed companies. More specifically, this study shows the empirical evidence of the effect of a new set of Chinese accounting standards (CAS) introduced in 2007 on firms’ performance. Analyzing 7020 firm-year observations, this study finds that, compared to pre-IFRS adoption regime, firms’ performance significantly improves after IFRS adoption. A set of sensitivity analysis provides consistent findings about the impact of new CAS on firms’ profitability. As for the implication of international accounting standards, these findings suggest that adoption of global accounting standards is bringing positive change in the capital market through firms’ development in terms of profitability.