scholarly journals PENGARUH KONVERGENSI IFRS DAN KEPEMILIKAN ASING TERHADAP TIMELY LOSS RECOGNITION

2018 ◽  
Vol 1 (2) ◽  
pp. 92
Author(s):  
Liliek Nur Sulistiyowati ◽  
Robby Sandhi Dessyarti ◽  
Adi Gunanto
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Control Variable ◽  
Foreign Ownership ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Quality Of Accounting Information ◽  
Before And After ◽  
Timely Loss Recognition

<em>This research is intended to analyzeinfluence of convergence of International Financial Reporting Standard (IFRS) and foreign ownership to Timely Loss Recognition (TLR) at trade and service company listed in Bursa Efek Indonesia (BEI). This research comparing between before and after the IFRS convergence of the level loss recognition and see whether there is an increase in therecognition of a loss on time with the presence of foreign ownership within the company.Researchers used four control variables, namely firm size, profitability, leverage, and audit quality. TLR is measured by the ratio of Large Negative Net Income.This research used purposive sampling method at companies listed on BEI from 2014 until 2016, there are13 samples and tested by using linear regression.The results of this research indicate thatthere was an influence between IFRS convergence and foreign ownership of TLR. Control variable, leverage variable and audit quality indicatesignificant influence. This research has once again indicatethat the application of IFRS has an impact on improving the quality of accounting information and the demand for timely recognition of losses in less than stackholder financial statements.</em>

Accounting Standards and Earnings Quality — Evidence from Registered ADRs

2018 ◽  
Vol 21 (04) ◽  
pp. 1850022
Author(s):  
Yaseen S. Alhaj-Yaseen ◽  
Kean Wu ◽  
Leslie B. Fletcher
Keyword(s):  
Financial Reporting ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
High Quality ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Us ◽  
Us Gaap

This paper examines the changes in earnings quality of registered American Depositary Receipts (ADRs) as a result of switching accounting standards. We aim to shed light on the potential impact of International Financial Reporting Standard (IFRS) adoption on US firms. A suboptimal approach to achieve this goal is through examination of US firms’ surrogates such as ADRs. Unlike previous studies, we made a distinction between registered and unregistered ADRs and affirmed that registered ADRs are the closest surrogates with which to conduct our analysis because they are exclusively required to adhere to the Securities and Exchange Commission (SEC)’s stringent disclosure requirements. When cross-listing their equity on the US exchanges, foreign issuers can file their financial reports with the SEC using IFRS, US GAAP (generally accepted accounting principles), or their domestic GAAP with reconciliation to US GAAP. An improvement in earnings quality is documented when ADRs adopt US GAAP or IFRS versus domestic GAAP. However, when the comparison is made between US GAAP and IFRS, no difference in earnings quality is documented. These results indicate that switching to high-quality accounting standards is likely to improve earnings quality. This improvement is maximized when the difference between reporting standards is high and minimized if otherwise. Our conclusion is that the adoption of IFRS in the US is unlikely to change earnings quality of local issuers. Moreover, we drew a distinction between reconciliation with and adoption of high-quality accountings standards and find that while the former can enhance earnings quality, the latter can further improve it.

scholarly journals The expected impact of applying IFRS (17) insurance contracts on the quality of financial reports

Accounting ◽  
2021 ◽  
pp. 581-590
Author(s):  
Ahmad Dahiyat ◽  
Walid Owais
Keyword(s):  
Financial Reporting ◽  
Cash Flows ◽  
Faithful Representation ◽  
Insurance Companies ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Insurance Contracts ◽  
Analytical Approaches

This study aimed to explore the expected effect of applying the International Financial Reporting Standard (IFRS) 17 Insurance Contracts on the quality of financial reports. The study followed the exploratory descriptive analytical approaches. A questionnaire was developed and distributed to a sample of 120 financial employees in all insurance companies in Jordan. It concluded that the expected impact of applying the standard on the quality of financial reports was significant, especially on the comparability of financial reports, and faithful representation. It was found that there is an expected, statistically significant and positive effect between the application of the standard, and the quality of financial reports in general, and the expected influence of applying the standard and each of comparability, faithful representation, relevance, verifiability, timely, and understandability respectively. The study recommends the application of the standard in the specified time, work to create appropriate conditions, and the need to follow objective assumptions from the company's management for the estimation of cash flows when applying the standard.

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.

Cross-country determinants of IFRS for SMEs adoption

2020 ◽  
Vol 18 (1) ◽  
pp. 147-168
Author(s):  
Salma Damak-Ayadi ◽  
Nesrine Sassi ◽  
Moujib Bahri
Keyword(s):  
Law Enforcement ◽  
Financial Reporting ◽  
Joint Effect ◽  
Institutional Factors ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Private Companies ◽  
Content Type ◽  
Trading Networks

Purpose The purpose of this study is to identify the influence of environmental and institutional factors on the adoption of the International Financial Reporting Standard for small and medium-sized entities (IFRS for SMEs). This study used the neo-institutional theory and the economic theory of networks to explain why countries choose to adopt IFRS for SMEs. Design/methodology/approach This study is based on logistic regression analysis to investigate 177 countries, including 77 jurisdictions that adopted IFRS for SMEs between 2009 and 2015. Findings The findings confirm that the adoption of IFRS for SMEs is significantly related to law enforcement quality, culture, trading networks and economic growth. At the institutional level, coercive and normative isomorphism was found to be positively associated with IFRS for SMEs adoption. The results show also that the quality of the audit has no significant effect on the adoption of IFRS for SMEs. However, the joint effect of the quality of audit and quality of law enforcement is significantly related to the adoption of IFRS for SMEs. Practical implications The study contributes to a better understanding of the factors influencing the implementation of IFRS for SMEs standard across the globe and could be used to predict a country’s decision to adopt this standard. Originality/value This study contributes to the literature on international accounting harmonization by examining both environmental and institutional factors that influence the adoption of IFRS for unlisted private companies.

scholarly journals Dampak Adopsi IFRS terhadap Panjang Laporan Keuangan Perusahaan yang terdaftar di Bursa Efek Indonesia

2018 ◽  
Vol 5 (2) ◽  
pp. 170-181
Author(s):  
Muanas Muanas ◽  
Zahra Argadia Garini
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs Adoption ◽  
Before And After ◽  
Other Comprehensive Income ◽  
High Level

As a member of G-20 Forum, Indonesia starts to adopts the International Financial Reporting Standard (IFRS) as a requirement to fulfill the demands and needs of financial statements users. The adoption of international accounting standards into national accounting standards aim to create financial statements that have high level of credibility and accountability. IFRS requests the requirement of high level of disclosure items so the value of companies will increase, management will have high level of accountability to run the company, that allows changes on the financial statements, for example that can change the length of financial statements. The purpose of this study is to know the effect of IFRS adoption on the length of financial statements, and to know the content of financial statements before and after IFRS adoption. This study was conducted by dividing financial statements into two sections, which are major statements and notes to the financial statements.  The financial statements used in this study are 2008 and 2013. The sample was selected by purposive sampling method and analyzed using parametric and non-parametric tests. Results of this study show that major statements and notes to the financial statements experienced an increase in length after adopting IFRS. Notes to financial statements experiencing the most significant increase in length after adopting IFRS. On the major statements, the increase is caused by other comprehensive income account. While on the notes to the financial statements, increase is caused by implementation of  PSAK 1 which requires the high level of disclosures. The increase mainly occured in accounting policy on the financial statements.

Firm Size as Predictor of Compliance to International Financial Reporting Standards (IFRS) 8

2013 ◽  
Vol 6 (1) ◽  
Author(s):  
WILLIAM T. SUCUAHI
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Audit Quality ◽  
Investment Decision ◽  
The Philippines ◽  
Investment Strategies ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Ifrs 8

Globalization and diversification are the trends of business nowadays. Companies’ diversification will lead to complexity of financial information and investment decision. The objective of this study is to determine the level of compliance with International Financial Reporting Standard (IFRS) 8 and to determine other related segment information to formulate investment strategies. The subjects of the research were the 100 diversified publicly-listed holding companies in the Philippines with 2010-2011 annual financial reports. Segment Disclosure Index (SDI) was developed to determine the level of compliance with IFRS 8. The study used firm size, company age, audit quality, profitability, leverage, growth and industry as predictors of the level of compliance. The result shows high overall level of compliance with IFRS 8 – Operating segment. Using multiple regression analysis, it was found out that only firm size predicts the level of compliance with IFRS 8. Large companies mostly comply with disclosure requirement stated in IFRS 8 compared to smaller companies. Most of the companies are engaged in real estate development and leasing business.Keywords: Business and Management, accounting, IFRS 8, disclosure, segment reporting,descriptive design, Philippines2

scholarly journals Measurement of earnings management before and after applying IFRSS using jones' modified method an applied research in a sample of banks listed in the Iraqi stock exchange

2018 ◽  
Vol 6 (2) ◽  
pp. 56
Author(s):  
Dr Sabeha Barzan Farhood
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Applied Research ◽  
Stock Exchange ◽  
Accounting System ◽  
Financial Reporting Standards ◽  
Modified Method ◽  
Quality Of Accounting Information ◽  
Before And After

In the year 2016, all commercial banks in Iraq were obliged to switch from the application of the local unified accounting system to the application of International Financial Reporting Standards (IFRSs) to improve the quality of accounting information and make it relevant for decision-making. The objective of the research is to measure earnings management in a number of banks which applied IFRSs at the end of the financial year 2016 through their application on a sample of banks for the years (2012-2013, 2014, 2015, 2016). The results were compared with the measurement of earnings management under the application of the unified accounting system (before the adoption of IFRSs) and after the application of the (IFRSs). The researcher concluded that the percentage of earnings management in the years in which the banks applied the unified accounting system is very close to its percentage in the case of the application of IFRSs, which shows that the application of IFRSs did not change the percentage of earnings management in banks.  

scholarly journals PENINGKATAN PENGETAHUAN AKUNTANSI PADA GURU AKUNTANSI SMK NEGERI 1 DEPOK SLEMAN BERDASARKAN STANDAR AKUNTANSI KEUANGAN (SAK) BERBASIS INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS)

2020 ◽  
Vol 4 (2) ◽  
pp. 164
Author(s):  
Alfriadi Dwi Atmoko
Keyword(s):  
Financial Reporting ◽  
Teaching Quality ◽  
Basic Knowledge ◽  
Vocational Teachers ◽  
Test Results ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Knowledge Based ◽  
Teacher's Knowledge

Increased Accounting Knowledge in Accounting Teachers at SMK Negeri 1 Depok Sleman Based on IFRS-Based SAKAbstract This activity aims to socialize the IFRS curriculum to teachers at SMK N 1 Depok Sleman Yogyakarta in order to increase accounting knowledge based on IFRS-based SAK so that the quality of teaching of accounting teachers at the SMK can improve. Knowledge about IFRS is expected to be given to students so students can be better prepared to compete in the current industry. The implementation of IFRS in Indonesia has started to be implemented since 2012, but not a few vocational teachers in Indonesia understand and apply this curriculum to school lessons, resulting in a mismatch between the world of education and the industrial world. The method used in this service is to do a pre-test before the socialization and FGD of accounting teachers at SMK Negeri 1 Depok Sleman Yogyakarta. The pre-test results indicate that basic knowledge of IFRS-based accounting is still low at 34.8%. After pre-test the next program is IFRS-based accounting socialization and continued at the FGD session to discuss questions and material as teaching material in class. The results of the socialization and FGD can increase the knowledge of the teachers. Finally knowledge of the teachers recalled up to 276,7% so that the final result of the teacher's knowledge became 96,3%.Keywords: IFRS, vocational teacher, teaching quality, socialization.Abstrak. Kegiatan ini bertujuan untuk mensosialisasikan kurikulum IFRS kepada guru di SMK Negeri 1 Depok Sleman Yogyakarta guna meningkatkan pengetahuan akuntansi berdasarkan SAK berbasis IFRS agar kualitas pengajaran guru akuntansi di SMK tersebut dapat meningkat. Pengetahuan tentang IFRS diharapkan dapat diberikan kepada para siswa agar para siswa dapat lebih siap dalam berkompetisi pada industri saat ini. Penerapan IFRS di Indonesia sudah mulai diterapkan sejak tahun 2012, namun tidak sedikit guru SMK di Indonesia yang mengerti dan menerapkan kurikulum ini pada pelajaran sekolah sehingga terjadi ketidak kecocokan antara dunia pendidikan dengan dunia industri. Metode yang digunakan dalam pengabdian ini adalah melakukan pre-test sebelum dilakukan sosialisasi dan FGD terhadap guru-guru akuntansi pada SMK N 1 Depok Sleman Yogyakarta. Hasil pre-test menunjukkan pengetahuan dasar terhadap akuntansi berbasis IFRS masih rendah yaitu sebesar 34,8%. Setelah dilakukan pre-test program selanjutnya yaitu sosialisasi akuntansi berbasis IFRS dan dilanjutkan pada sesi FGD untuk membahas soal dan materi sebagai bahan ajar di kelas. Hasil dari sosialisasi dan FGD dapat meningkatkan pengetahuan para guru. Pengetahuan para guru meningat hingga 276,7% sehingga hasil akhir pengetahuan guru menjadi 96,3%.Kata Kunci: IFRS, guru SMK, kualitas pengajaran, sosialisasi.

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