scholarly journals Konvergensi IFRS di Indonesia: Apakah Relevansi Nilai Relatif dan Inkremental Informasi Akuntansi Terdampak?

2018 ◽  
Vol 5 (2) ◽  
pp. 221-234
Author(s):  
Anisah Kusuma Dewi ◽  
Ari Budi Kristanto
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Value Relevance ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Earnings Information ◽  
Incremental Value ◽  
Relative Value

This paper investigates whether the value relevance of earnings information and equity information have changed as the IFRS (International Financial Reporting Standard) convergence taken place in Indonesia. The qualitative characteristic is viewed in the perspective of relative value and incremental value relevance. Theoretically, the earning’s value relevance should increase, and equity lost its value relevance pursuant the IFRS convergence. The financial data of manufacturing companies in Indonesian Stock Exchange during 2008-2016 were sorted purposively based on companies with complete financial statement and stock price data during 8 consecutive years. This study uses regression analysis to test the hypotheses. It was found that earning and equity information contain value relevance. Moreover, there is no evidence to support the hypotheses that IFRS convergence decrease earning’s value relevance and decrease equity’s value relevance.

scholarly journals Compliance With International Financial Reporting Standards and Value Relevance of Accounting Information in South Africa

2021 ◽  
Vol 12 (4) ◽  
pp. 277
Author(s):  
Unity Maqeda Putsai ◽  
Msizi Mkhize
Keyword(s):  
South Africa ◽  
Financial Reporting ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Positive Association ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Significant Positive Association ◽  
Compliance Level

The objective of the study is to investigate the relationship between the International Financial Reporting Standard (IFRS 1) and the value relevance (VR) of accounting information. In this study forty-six companies listed on the Johannesburg Stock Exchange during the period 1993 to 2017. Panel data is used to compare the period before and after IFRS. The companies in the sample are composed of the following sectors; mining, manufacturing, banks and investment companies, real estate, general industry, retailers, construction and material, chemical and software, and computers. Based on the yearly financial reports published by public companies in South Africa, the study employed the Cookes (1992) Unweighted Disclosure Index to measure the level of compliance in South Africa. Fifty-six disclosure elements from IFRS 1 were utilized to measure the compliance level. Thereafter Ohlson (1995) Model is used with dummy variables to compare the pre-and post-IFRS period. First, the study reflected that most of the South African companies exhibit higher compliance rates ranging from 87 to 93.417 which is impressive. On the other hand, 4 companies recorded Medium level compliance that is between 60% to 79% compliance level. The findings further revealed that there is a significant positive association between compliance with IFRS 1 and the value relevance of accounting information.

scholarly journals ASIMETRI INFORMASI DAN MANDATORY DISCLOSURE KONVERGENSI INTERNATIONAL FINANCIAL REPORTING STANDARD: EFEK TERHAADAP RELEVANSI NILAI INFORMASI LABA DAN NILAI BUKU

2018 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Dhea Ayu Rosita Putri ◽  
Evi Rahmawati ◽  
Hafiez Sofyani
Keyword(s):  
Information Asymmetry ◽  
Financial Reporting ◽  
Value Relevance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Information Value ◽  
Mandatory Disclosure ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Impact

<p><em>This reasearch aimed to recognize the impact of information asimmetry and mandatory disclosure IFRS convergence toward value relevance of earnings and book value.</em> <em>The population in this study are manufakture companies listed on the  Indonesia Stock Exchange (IDX) year 2016. Sampling method that use is purposive sampling. The number of samples in this study are 68 samples.</em> <em>Types of data us is secondary data obtained from www.idx.co.id.</em> <em>Analysis technique used were Moderated Regression Analysis by SPSS 15.0.</em><em> </em><em>The results showed that the mandatory disclosure level of IFRS convergence increases the relevance of information on the value of earnings, the mandatory disclosure level of IFRS convergence does not increase the relevance of book information value, information asymmetry does not decrease the value relevance of earnings information, and information asymmetry decreases the relevance of book information value.</em></p>

scholarly journals ANALISIS PERBEDAAN KUALITAS ACCRUAL ANTARA SEBELUM DAN SESUDAH PENGADOPSIAN INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS) PADA PERUSAHAAN MANUFAKTUR DI INDONESIA(Studi Empiris pada Perusahaan Manufaktur yang terdapat di Bursa Efek Indonesia Tahun 2009-2014)

2017 ◽  
Vol 2 (1) ◽  
pp. 42-48
Author(s):  
Esti Windarti ◽  
Noer Sasongko ◽  
Zulfikar Zulfikar
Keyword(s):  
Financial Reporting ◽  
Transition Period ◽  
Stock Exchange ◽  
T Test ◽  
Manufacturing Companies ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Paired Sample ◽  
Before And After ◽  
The Difference

The purpose of this study to examine the numbers between the accrual quality difference before and after adopting International Financial Reporting Standards (IFRS). The population in this study are all manufacturing companies listed in Indonesia Stock Exchange 2009-2014. Sampling using purposive sampling selection of samples with specific criteria.Analysis of the data used is by using normality test and analysis methods paired sample t-test. Calculation of accruals quality using the 2 models that Dechow and Dichev Model and Modified Jones Models. From the test results showed that there was a difference in quality between the accrual before and after adopting International Financial Reporting Standard (IFRS) for 2009-2014 by using Dechow and Dichev Model, while contrary to the results of testing using the Modified Jones Model. The difference is due to the result of the absence of a change in accounting rules and the transition period that occurred in Indonesia. Keywords: Quality acrual , International Financial Reporting Standard ( IFRS ), Manufacturing Company , Paired Sample T -test

Quality and quantity of FTSE-100 segmental information reporting

2019 ◽  
Vol 32 (3) ◽  
pp. 326-343 ◽  
Author(s):  
Ghassan H. Mardini ◽  
Sameh Ammar
Keyword(s):  
Financial Reporting ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Content Type ◽  
Information Reporting ◽  
Ifrs 8 ◽  
The Uk ◽  
The Impact

Purpose This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review (PIR) issued by international accounting standards board (IASB). This impact is examined in relation to quality and quantity as SIR dimensions represent, respectively, the level of reported items and segments. As a complement to this, the chief operating decision maker (CODM) identity is considered to understand the patterns of SIR dimensions. Design/methodology/approach The SIR of the UK financial times stock exchange 100 (FTSE-100) listed companies over the period 2013-2016 is the research’s scope. Several criteria were developed to ensure a representative research sample. A disclosure index approach was used facilitating the use of content analysis for data collection, which pertained to the dimensions of SIR published by the FTSE-100 following IFRS 8 PIR. Findings The IFRS 8 PIR has had several implications shaping the growing trend that is underpinned by the SIR dimensions published by FTSE-100 companies. First, the SIR quantity dimension positively corresponds over 2013-2016, but it still does not meet IASB’s demands. This, secondly, also applies to the quality dimension of SIR to uncover inconsistency with the existing knowledge being held regarding the introduction of IFRS 8. More specifically, the response of the FTSE-100 to mandatory and voluntary items seems to be in transition of substitution. Third, CODM’s identity was an insightful dimension in rationalising the understanding through the aforementioned dimensions. It is undertaken by boards of directors or executive committees and the case of the latter is associated with more disclose in relation to the CODM’s identity. Practical implications These findings reveal implications to: academics undertaking further research about IFRS 8 PIR to challenge or endorse this conclusion, using similar or alternative approaches; the stakeholders’ decision-making process; and policymakers to re-think the structure of mandatory and voluntary items. Originality/value This paper provides empirical evidence on the quality and quantity of SIR published by FTSE-100 companies following IFRS 8 PIR.

scholarly journals The Value of Discretion in Africa: Evidence from Acquired Intangible Assets Under IFRS 3

2020 ◽  
Vol 55 (02) ◽  
pp. 2050008
Author(s):  
Abongeh A. Tunyi ◽  
Dimu Ehalaiye ◽  
Ernest Gyapong ◽  
Collins G. Ntim
Keyword(s):  
Financial Reporting ◽  
Intangible Assets ◽  
Value Relevance ◽  
Managerial Discretion ◽  
African Countries ◽  
Target Firm ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Main Hypothesis

This paper examines the value of managerial discretion in financial reporting by exploring the value relevance of intangible assets acquired in business combinations (AIA) before and after the 2008 International Financial Reporting Standard (IFRS) 3 amendment. The 2008 IFRS 3 amendment gave managers the discretion to recognize previously unrecognized intangibles in the target firm, hence, we posit that if managerial discretion improves the quality of financial reporting, we should observe an increase in the value relevance of AIA after the amendment. Our empirical analysis is based on a dataset of 603 mergers announced between 2004 and 2016, across seven African countries. Consistent with our main hypothesis, we find that the value relevance of AIA, predominantly acquired goodwill (AGW), increased after the amendment, suggesting that managerial discretion improves the quality of financial information. Our results further show that the value of discretion is moderated by the underlying institutional quality, with the value relevance of AIA being greater in high-quality institutional contexts. Our findings are robust to alternative measures of AIA, alternative models for testing value relevance, and various controls for endogeneity. Overall, our findings have important implications for accounting standard-setters, governments, investors, and practitioners.

scholarly journals The impact of the IFRS 15 implementation on the revenue based earnings management in Poland

2021 ◽  
Vol 43 ◽  
pp. 387-403
Author(s):  
Izabela Morawska ◽  
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Jel Classification ◽  
Revenue Recognition ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Warsaw Stock Exchange ◽  
The Impact

Aim/purpose – This paper aims at investigating whether the International Financial Reporting Standard (IFRS) 15 Revenue from Contracts with Customers implementation in Poland has affected earnings management that uses discretion in revenue recognition to avoid losses and earnings decreases. Design/methodology/approach – The empirical studies were conducted using a sample of 80 entities from four industries listed on the Warsaw Stock Exchange (WSE) in Poland from 2016 to 2019. Caylor’s (2010) revenue-based model was applied, and an econometric model describing the studied relation was built and verified to this end. Findings – The analyzed entities managed earnings using discretion in accrued revenue recognition to avoid reporting losses. The research results did not confirm that the IFRS 15 adoption in Poland influenced revenue-based earnings management aimed at avoiding losses and earnings decreases. Research implications/limitations – This study warns of the role played by discretion in revenue recognition and recommends careful recognition of revenue under IFRS 15. Limitations of this study are generally related to the models’ specification and a relatively small number of the entities studied. Originality/value/contribution – This study contributes to the literature on revenue- -based earnings management and is one of the first studies on the association between IFRS 15 adoption and revenue-based earnings management in Poland. Thus, this study bridges the research gap in Poland. Keywords: IFRS 15, earnings management, revenue recognition, earnings benchmarks. JEL Classification: M40, M41, M48.

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