Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.

This study examined the unconditional conservatism and earnings quality as part of corporate governance before and after IFRS convergence in Indonesia. Specifically, this study looked at the effect of eliminating the conservatism concept within the accounting framework, following thedevelopment of p...

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Main Authors: Santi, Monica, Puspitasari, Evita, Ghani, Erlane K
Format: Article
Language:English
Published: Universiti Teknologi MARA Cawangan Selangor 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/31138/
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author Santi, Monica
Puspitasari, Evita
Ghani, Erlane K
author_facet Santi, Monica
Puspitasari, Evita
Ghani, Erlane K
author_sort Santi, Monica
building UiTM Institutional Repository
collection Online Access
description This study examined the unconditional conservatism and earnings quality as part of corporate governance before and after IFRS convergence in Indonesia. Specifically, this study looked at the effect of eliminating the conservatism concept within the accounting framework, following thedevelopment of principles-based accounting standards and earnings quality on financial reporting practices. This study further examined the effect of eliminating the conservatism concept towards the earnings quality upon implementation of IFRS convergence on the financial reporting practices. Using content analysis on 180 annual reports of 36 manufacturing listed companies over a 5-year period in Indonesia, this study found that unconditional conservatism has not changed significantly after IFRS convergence. However, the earnings quality of the manufacturing companies has declined upon IFRS convergence. This study also found that unconditional conservatism has a positive influence on earnings quality upon IFRS convergence although the result is insignificant. From the agency theory’s perspective, this study highlighted the introduction of accounting and governance reform on the principal-agent relationship in relation to the unconditional conservatism and earnings quality practices. The findings in this study shed some light to the regulators, practitioners and other interested parties on the implication of IFRS convergence in a developing country such as Indonesia.
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spelling uitm-311382020-06-17T00:40:30Z https://ir.uitm.edu.my/id/eprint/31138/ Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani. mar Santi, Monica Puspitasari, Evita Ghani, Erlane K Financial management. Business finance. Corporation finance Earnings management Malaysia This study examined the unconditional conservatism and earnings quality as part of corporate governance before and after IFRS convergence in Indonesia. Specifically, this study looked at the effect of eliminating the conservatism concept within the accounting framework, following thedevelopment of principles-based accounting standards and earnings quality on financial reporting practices. This study further examined the effect of eliminating the conservatism concept towards the earnings quality upon implementation of IFRS convergence on the financial reporting practices. Using content analysis on 180 annual reports of 36 manufacturing listed companies over a 5-year period in Indonesia, this study found that unconditional conservatism has not changed significantly after IFRS convergence. However, the earnings quality of the manufacturing companies has declined upon IFRS convergence. This study also found that unconditional conservatism has a positive influence on earnings quality upon IFRS convergence although the result is insignificant. From the agency theory’s perspective, this study highlighted the introduction of accounting and governance reform on the principal-agent relationship in relation to the unconditional conservatism and earnings quality practices. The findings in this study shed some light to the regulators, practitioners and other interested parties on the implication of IFRS convergence in a developing country such as Indonesia. Universiti Teknologi MARA Cawangan Selangor 2017-06 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/31138/1/AJ_MONICA%20SANTI%20MAR%20B%2017.pdf Santi, Monica and Puspitasari, Evita and Ghani, Erlane K (2017) Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani. (2017) Management & Accounting Review <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review.html>, 16 (1). pp. 1-19. ISSN 2550-1895 http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/547
spellingShingle Financial management. Business finance. Corporation finance
Earnings management
Malaysia
Santi, Monica
Puspitasari, Evita
Ghani, Erlane K
Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.
title Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.
title_full Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.
title_fullStr Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.
title_full_unstemmed Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.
title_short Analysis of Unconditional Conservatism and Earnings Quality on financial reporting Practices in Indonesia upon IFRS Convergence / Monica Santi, Evita Puspitasari and Erlane K Ghani.
title_sort analysis of unconditional conservatism and earnings quality on financial reporting practices in indonesia upon ifrs convergence / monica santi, evita puspitasari and erlane k ghani.
topic Financial management. Business finance. Corporation finance
Earnings management
Malaysia
url https://ir.uitm.edu.my/id/eprint/31138/
https://ir.uitm.edu.my/id/eprint/31138/