Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia

This paper is an empirical analysis of the earnings quality effects of accounting standards convergence to IFRS in Indonesia. I conduct three proxies of earnings quality: income smoothing, discretionary accruals, and timely loss recognition. The time periods of the analysis are 2008-2010 as pre-conv...

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Main Author: Ferdian, Ilham Ari
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Online Access:https://eprints.nottingham.ac.uk/36645/
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author Ferdian, Ilham Ari
author_facet Ferdian, Ilham Ari
author_sort Ferdian, Ilham Ari
building Nottingham Research Data Repository
collection Online Access
description This paper is an empirical analysis of the earnings quality effects of accounting standards convergence to IFRS in Indonesia. I conduct three proxies of earnings quality: income smoothing, discretionary accruals, and timely loss recognition. The time periods of the analysis are 2008-2010 as pre-convergence period and 2012-2015 as the post-convergence period with 245 firms from Indonesian listed firms. Discretionary accruals and timely loss recognition measurements in this study found evidence in decreasing of earnings quality in the post-convergence period compared to the pre-convergence period while another measurement show insignificancy. The evidence is the sample firms in post-convergence period tend to increase income-decreasing earnings management and recognise loss timelier than income in high conservatism accounting.
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institution University of Nottingham Malaysia Campus
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language English
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spelling nottingham-366452017-10-19T17:03:39Z https://eprints.nottingham.ac.uk/36645/ Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia Ferdian, Ilham Ari This paper is an empirical analysis of the earnings quality effects of accounting standards convergence to IFRS in Indonesia. I conduct three proxies of earnings quality: income smoothing, discretionary accruals, and timely loss recognition. The time periods of the analysis are 2008-2010 as pre-convergence period and 2012-2015 as the post-convergence period with 245 firms from Indonesian listed firms. Discretionary accruals and timely loss recognition measurements in this study found evidence in decreasing of earnings quality in the post-convergence period compared to the pre-convergence period while another measurement show insignificancy. The evidence is the sample firms in post-convergence period tend to increase income-decreasing earnings management and recognise loss timelier than income in high conservatism accounting. 2016-09-14 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36645/1/Dissertation-Ilham%20Ari%20Ferdian.pdf Ferdian, Ilham Ari (2016) Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia. [Dissertation (University of Nottingham only)]
spellingShingle Ferdian, Ilham Ari
Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia
title Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia
title_full Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia
title_fullStr Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia
title_full_unstemmed Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia
title_short Does Convergence of Accounting Standards Affect Earnings Quality: Evidence from Indonesia
title_sort does convergence of accounting standards affect earnings quality: evidence from indonesia
url https://eprints.nottingham.ac.uk/36645/