Does IFRS Adoption Enhance the Accounting Comparability of Emerging Market?

Keywords

IFRS, Convergence,Accounting Information, Iomparabilit, Indonesia

Abstract

The purpose of this study is to examine the comparability level of accounting information for Indonesian firms before and after accounting standards change during IFRS convergence in this country. This study compares the periods before and after significant revisions of the accounting standards, by examining the reported financial information from 2005 to 2012. To analyze the change of accounting comparability level, this study measures the similarity of accounting functions using De Franco et al. (2011) model and the similarity of information content using Yip and Young (2012) model. From the test of using those models, this study finds that the period after recent revisions of accounting standards does not have a significant different of the accounting comparability level, relatively compared with the previous period. The accounting comparability measured as similarity of accounting functions does not improve significantly after recent revisions of the accounting standards. Similarly, the measurement based on the similarity of accounting information content provides evidence that the latter period does not have a better level of accounting comparability.

Copyright

© 2018, 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/).

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TY  - CONF
AU  - Tri Lestari
PY  - 2018/12
DA  - 2018/12
TI  - Does IFRS Adoption Enhance the Accounting Comparability of Emerging Market?
BT  - Proceedings of International Conference on Issues in Social and Education Research (ICISER 2017)
PB  - Atlantis Press
SP  - 6
EP  - 13
SN  - 2352-5398
UR  - https://www.atlantis-press.com/article/55910556
ID  - Lestari2018/12
ER  -