Susilo, Stephani (2012) The Impacts Of IFRS Transition On Financial Position, Financial Performance And Key Financial Ratios For Companies Listed In Indonesia Stock Exchange (IDX). [Undergraduate thesis]
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The shift to International Financial Reporting Standard (IFRS) has affected the financial reporting of almost all countries around the world, including Indonesia. Seriously planned since 2007, IFRS convergence in Indonesia was predicted to be completed in 2012. The issuance of IFRS-based PSAK effective in January 1, 2011 has required the public companies to restate their financial statements for year 2010 which are provided as comparison balance in financial statements 2011, to comply with the converged PSAK. IFRS with its high-quality is believed to enhance the accounting information quality by minimizing the opportunity for earnings management. Thus, this convergence affects the level of conservatism in presenting the financial position and financial performance of the companies. Total equity is utilized as the proxy for financial position. Total profit (net income based on PSAK before IFRS convergence in 2011 and total comprehensive income based on IFRS converged PSAK) will be utilized as the proxy for financial performance. Changes in level of conservatism are able to trigger changes in key financial indicators as well. Two key financial indicators chosen in this research are gearing and current ratio. Gearing ratio is used to present the long-term view while current ratio is used to present the short-term view. In order to study the changes on those financial information, this research compares the financial data for year 2010 according to PSAK 2010 with the financial statment 2010 which were restated to comply with PSAK 2011 (presented in financial statments 2011). All companies listed in Indonesian Stock Exchange on 2010-2012 were used, except property, real estate and building construction and financial institution sector. Comparability analysis utilized Gray’s Index, Wilcoxon Signed Rank Test and Median Test. Results of this research found that IFRS convergence on 2011 in Indonesia led to higher reported financial position and financial performance but lower key financial indicators.
| Item Type: | Undergraduate thesis |
|---|---|
| Uncontrolled Keywords: | IFRS convergence, international standard, Gray’s Index. |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Business and Economic > Department of Economic |
| Depositing User: | Masyhur 196042 |
| Date Deposited: | 13 Dec 2013 04:33 |
| Last Modified: | 13 Dec 2013 04:33 |
| URI: | http://repository.ubaya.ac.id/id/eprint/3798 |
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