scholarly journals Earning Management Analysis before and after Implementation of International Financial Reporting Standards (IFRS): Empirical Study of Automotive and Components Companies Registered on the IDX

2019 ◽  
Vol 1 (01) ◽  
pp. 45-56
Author(s):  
I Wayan Wisnu Utama ◽  
Anis Purwanti
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Stock Exchange ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Reporting Standard ◽  
Financial Reporting Standards ◽  
Before And After

  The issue of the application of IFRS as a standard can encourage a decrease in the level of earnings management in a company so that the application of IFRS in financial statements has the purpose of providing reports that are faithful in nature so that the report users are reliable. The purpose of this study is to show a comparison of earnings management practices that occurred before and after the implementation of International Financial Reporting Standards (IFRS) in Automotive and Component companies registered in the Indonesia Stock Exchange (IDX) for the period of 2009-2014. The data used in this study are secondary data in the form of the company’s financial statements. The variables in this study are earnings management before and after IFRS implementation. The sampling method in this study was purposive sampling with a sample of 12 automotive and component companies on the Indonesia Stock Exchange. Discretionary accruals of Modified Jones Model is used to measure the earnings management. The analytical method used for hypothesis testing is Paired Sample T-test, a different test for two paired samples. The results of this study indicate that earnings management in the period after IFRS convergence was different than earnings management in the period before IFRS convergence in Automotive and Component companies. However, IFRS convergence has not guaranteed a decline in earnings management practices in Automotive and Component companies.  Keywords: Earnings Management, International Financial Reporting Standard, Discretionary Accrual

Empirical Study on the Effect of Adopting the International Financial Reporting Standards (IFRS) on the Quality of Earnings using Beneish Model in a Sample of Banks Listed in the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Zahraa Nasser Ali ◽  
Hakeem Hammood Flayyih
Keyword(s):  
Financial Reporting ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Global Capital ◽  
Financial Reporting Standards ◽  
The Impact

The need for international financial reporting standards (IFRS) emerged due to the increasing degree of interdependence between global capital markets and the need for investors to obtain reliable and honest financial information in expressing economic events, in order to find a common financial language, and this is what IFRS provide. Nevertheless, the research aimed to measure the impact of the adoption of IFRS on the quality of earnings in the Iraqi banks listed in the Iraqi Stock Exchange for a sample of 30 banks. The Beneish model was used to measure the quality of earnings, while Mann-Whitney was used to measure and prove the hypothesis of the research. However, the research reached a set of conclusions, including that although the IFRS should contribute to improving the quality of financial reporting, the adoption of these standards in commercial banks listed in the Iraq Stock Exchange did not contribute to achieving quality in earnings even after adopting those standards. Furthermore, a Beneish model is an important tool for auditors, financial analysts, investors, and creditors who have the ability to understand the financial statements or those who have a reasonable understanding of the nature of those financial statements in measuring the quality of earnings, because it is a simple and easy to implement tool.

scholarly journals GLOBALISATION OF FINANCIAL REPORTING STANDARD OF LISTED COMPANIES IN ASEAN TWO: MALAYSIA AND SINGAPORE

2017 ◽  
Vol 16 (1) ◽  
Author(s):  
Daw Tin Hla ◽  
Abu Hassan bin Md Isa
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Annual Reports ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Reporting Standard ◽  
Financial Reporting Standards

Malaysia and Singapore are the top two successful economies in the ASEAN region. They are converging their national accounting standards with the International Financial Reporting Standards (IFRSs) in an attempt to be more globalised. The globalisation of financial reporting standard is not just accounting focus but also for enhancing the quality and transparency of financial reporting of the firms in these countries. Investors and the other stakeholders rely on financial information reported by the firms on their websites to enable the information to access globally. This study focuses on the globalisation of financial reporting standards, corporate governance and transparency practice by the firms listed on Bursa Malaysia and Singapore. It is to analyse the level of financial reporting quality of the firms in compliance with the International Financial Reporting Standards (IFRS) in their annual reports by using disclosure analysis. Additionally, it determines the association between the financial reporting quality with IFRS compliance, and corporate governance and transparency practice of the firms listed on the main markets of Bursa Malaysia and main board of Singapore Stock Exchange (SGX), using multiple regression analysis. The finding of this study highlights the association of higher level of financial reporting quality with IFRS compliance of the firms, and their good corporate governance and transparency practice are positively associated in these two countries. This study also provides some opportunities to achieve sustainable convergence with the International Financial Reporting Standards of the firms by improving corporate governance and transparency in ASEAN countries.Keywords: International Financial Reporting Standards; Corporate Governance; Transparency and Disclosure Practice; Malaysia and Singapore.

The Relationship between the Structure of Ownership and the Choice of Accounting Policies and their Reflection on the Market Value Considering International Financial Reporting Standards for Banks Listed on the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Salah Kadhim ◽  
Bakr Ibrahim Mahmood ◽  
Hussein Falah Hasan
Keyword(s):  
Financial Reporting ◽  
Direct Relationship ◽  
Stock Exchange ◽  
Market Value ◽  
Accounting Conservatism ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Before And After ◽  
The Relationship

The study aimed to clarify the concept and importance of the relationship between the structure of ownership and the choice of accounting policies and their reflection on the market value in light of international financial reporting standards for banks listed in the Iraq Stock Exchange. Eleven banks were selected for the period from 2010 to 2019. The results of the study concluded that there is a direct relationship between the percentage of administrative ownership weighted by accounting conservatism and the market value of the research sample banks. This was before and after the application of the International Financial Reporting Standards (IFRS), which indicates that the application of the standards did not limit the management's behavior towards the accounting conservatism policy in order to increase the market value.

Analisis Perbedaan Earnings Response Coefficient (ERC) Sebelum dan Setelah Adopsi IFRS pada Perusahaan yang Tercatat dalam Bursa Efek Indonesia

MODUS ◽  
2016 ◽  
Vol 28 (1) ◽  
pp. 39
Author(s):  
Fransisca Intan Galantika ◽  
I Gede Siswantaya
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Reporting Standards ◽  
Earnings Response Coefficient ◽  
Financial Reporting Standards ◽  
Response Coefficient ◽  
Significant Difference ◽  
Before And After ◽  
Earnings Response

AbstrakKonvergensi International Financial Reporting Standards (IFRS) menyebabkan Pernyataan Standar Akuntansi Keuangan (PSAK) mengalami beberapa perubahan. Perbedaan standar akuntansi keuangan menyebabkan komparibilitas laporan keuangan menurun sehingga investor dari berbagai negara sulit untuk mengambil keputusan investasi. Muncullah IFRS sebagai standar akutansi global sebagai acuan dalam menghasilkan pelaporan keuangan yang berkualitas. Penelitian ini bertujuan untuk melakukan analisis mengenai ada tidaknya perbedaan signifikan antara nilai Earning Response Coefficient (ERC) sebelum dan sesudah adopsi IFRS pada perusahaan yang tercatat di Bursa Efek Indonesia (BEI). ERC digunakan sebagai proksi untuk melihat reaksi pasar. Data yang digunakan dalam penelitian ini merupakan data sekunder berupa laporan keuangan tahunan dan harga saham bulanan. Sampel yang digunakan dalam penelitian ini adalah perusahaan yang terdaftar di BEI pada tahun 2009 hingga 2014. Pemilihan sampel didasarkan pada metode purposive sampling dengan kriteria yang telah ditentukan. Hasil penelitian ini membuktikan bahwa tidak terdapat perbedaan yang signifikan antara ERC sebelum dan sesudah adopsi IFRS ke dalam PSAK pada perusahaan yang terdaftar di BEI.Kata Kunci: IFRS, Earnings Response Coefficient, Laba, PSAK, Reaksi Pasar. Abstract Convergence of International Financial Reporting Standards (IFRS) causes the Pedoman Standar Akuntansi Keuangan (PSAK) undergo some changes. This then leads to differences in comparability of financial statements declining so that investors from various countries is difficult to make investment decisions. Then appeared IFRS as the global accounting standards as a reference in generating quality of financial reporting. This study aimed to analyze whether there was a significant difference between the value of Earning Response Coefficient (ERC) before and after the adoption of IFRS on the companies listed on the Indonesia Stock Exchange. ERC is used as a proxy to see the market reaction. The data used in this research is secondary data in the form of annual financial statements and monthly stock prices. The sample used in this study is a company listed on the Indonesia Stock Exchange (IDX) in 2009 to 2014. The sample selection was based on a random sampling method with predetermined criteria. The results of this study prove that there was no significant difference between the ERC before and after the adoption of IFRS into the FRS companies listed on the Stock Exchange.Keywords: IFRS, Earnings Response Coefficient, Earnings, PSAK, Market Reaction.

China Eastern Airlines: People's Republic of China Accounting Standards, International Financial Reporting Standards, or U.S. Generally Accepted Accounting Principles?

2007 ◽  
Vol 22 (4) ◽  
pp. 685-708 ◽  
Author(s):  
John L. Haverty
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
People’S Republic Of China ◽  
Reporting Standards ◽  
People's Republic Of China ◽  
Republic Of China ◽  
Financial Reporting Standards

China Eastern Airlines, headquartered in the People's Republic of China, has been listed and traded on the New York Stock Exchange since 1997. In its 2005 annual report, China Eastern Airlines presents two sets of financial statements: one prepared under People's Republic of China accounting regulations, and a second set prepared under International Financial Reporting Standards. In addition, as a listed company on the New York Stock Exchange, China Eastern Airlines files Form 20-F with the United States Securities and Exchange Commission. This filing includes a limited reconciliation of net income and net assets from International Financial Reporting Standards to United States' generally accepted accounting principles. Your job is to examine these financial statements, explore any differences noted between each of the financial statements and U.S. GAAP, and highlight some issues to be included in a financial analysis of China Eastern Airlines for possible inclusion in an investment portfolio.

Pengaruh Konvergensi International Financial Reporting Standards (Ifrs) Terhadap Penghindaran Pajak(Tax Avoidance)

2018 ◽  
Vol 26 (2) ◽  
pp. 158-169
Author(s):  
Umi Wahidah ◽  
Sri Ayem
Keyword(s):  
Financial Reporting ◽  
Tax Evasion ◽  
Stock Exchange ◽  
Control Variable ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Control Variables ◽  
Financial Reporting Standards

This research aimed to examine the effect of the convergence of International Financial Reporting Standards (IFRS) on tax avoidance on companies listed in Indonesia Stock Exchange. Tax avoidance that used in this research was Cash Efective Tax Rate (CETR). This research is also use the control variable to get other different influence that different such as CSR, size, and earning management (EM. This research used populations sector of transport service companies that listed in Indonesia Stock Exchange. The data of this research taken from secondary data that was from the Indonesia Stock Exchange in the form of Indonesian Capital Market Directory (ICMD) and the annual report of the company 2011-2015. The method of collecting sample was purposive sampling technique, the population that to be sampling in this research was populations that has the criteria of a particular sample. Companies that has the criteria of the research sample as many as 78 companies. The method of analysis used in this research is multiple regression analysis. Based on regression testing shows that the convergence of International Financial Reporting Standards (IFRS) has a positiveand significant impact on tax evasion. This shows that IFRS convergence actually improves tax evasion practices. The control variables of firm size and earnings management also significantly influence the application of IFRS in improving tax avoidance practices, while CSR control variables have no role in convergence IFRS in improving tax evasion practice.

Composition and characteristics of the financial statements elements in accordance with IFRS

2020 ◽  
pp. 36-42
Author(s):  
Mohammad Tariq Jassim
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Current Trends ◽  
Similarities And Differences ◽  
Qualitative Characteristics

In a market economy, the role of International Financial Reporting Standards is increasing. In order to understand their significance in modern conditions it seems necessary to consider the peculiarities of evolution of IFRS formation. The article reflects actual issues concerning the role and significance of International Accounting and Reporting Standards in modern conditions. The author has defined the necessity of applying International Accounting and Reporting Standards by Russian companies. The article highlights the main elements and users of financial statements prepared on the basis of IFRS, and analyzes the similarities and differences that exist in the formation of financial statements, based on the requirements of IFRS and RAS. The main qualitative characteristics of financial statements are considered in detail. Based on the results of the research, the author has identified current trends in the transition to international financial reporting standards.

scholarly journals Reliability of Financial Information from the Perspective of Benford’s Law

Entropy ◽  
2021 ◽  
Vol 23 (5) ◽  
pp. 557
Author(s):  
Ionel Jianu ◽  
Iulia Jianu
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Financial Statements ◽  
Financial Information ◽  
Benford’S Law ◽  
Professional Judgment ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Benford's Law ◽  
Before And After

This study investigates the conformity to Benford’s Law of the information disclosed in financial statements. Using the first digit test of Benford’s Law, the study analyses the reliability of financial information provided by listed companies on an emerging capital market before and after the implementation of International Financial Reporting Standards (IFRS). The results of the study confirm the increase of reliability on the information disclosed in the financial statements after IFRS implementation. The study contributes to the existing literature by bringing new insights into the types of financial information that do not comply with Benford’s Law such as the amounts determined by estimates or by applying professional judgment.

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