A Comparative Study on Financial Performance of Registered Companies in the Jakarta Islamic Index (JII) Before and After the Implementation of IFRS in Accounting Standards

DOI

10.2991/aebmr.k.200626.009How to use a DOI?

Keywords

IFRS, Liquidity, Solvability, Profitability, Jakarta Islamic Indeks

Abstract

International Financial Reporting Standard (IFRS) is one of the changes in accounting standard regulations that affect the environment of international accounting information. In increasing capital market activities, IFRS provides a series of uniformity of accounting standards which is adopted by various countries in the world that have the purpose to improve the international comparability and the quality of financial reporting. The financial accounting standard in Indonesia is applied to companies which have responsibility to the public. The purpose of this research was to analyze the differences of financial performance that were measured by the ratio of liquidity, solvability, and profitability, before and after the companies had converted to IFRS. This was comparative research, that compared the financial reporting by using purposive sampling technique on three companies which were continuously registered in the Jakarta Islamic Index for the period 2006-2018. Data was analyzed by using Wilcoxon test, because the normality test result was abnormal. The results of this research showed that liquidity ratio, which was measured by using Current Ratio (CR), and solvability ratio, which was measured by using DER and DAR, had no significant differences before and after the conversion to IFRS.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Muhammad Sholahuddin
AU  - Adi Parkawati
PY  - 2020
DA  - 2020/06/29
TI  - A Comparative Study on Financial Performance of Registered Companies in the Jakarta Islamic Index (JII) Before and After the Implementation of IFRS in Accounting Standards
BT  - Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR
PB  - Atlantis Press
SP  - 47
EP  - 51
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200626.009
DO  - 10.2991/aebmr.k.200626.009
ID  - Sholahuddin2020
ER  -