Qualitative Analysis of Financial Reporting Post Adoption of International Financial Reporting Standard - Comparative Study in South East Asia

Nyi Raden Handiani Suciati

2017

Abstract

The Implementation of Association of East Asian County Economy Community has increased the competition between countries, including the capital market competition. In the other hand, investor will analyze the information on the financial statement in making investment decision. The adoption of International Financial Reporting Standard belief will increase the financial reporting quality as it requires more disclosure, thus providing more understandable and comparable information. This study aims to analyze whether there are any changes in financial reporting quality post adoption of International Financial Reporting Standard (IFRS). We use listed companies at Indonesia Stock Exchange, Kuala Lumpur Syock Exchange and Singapore Stock Exchange as the subject in this research. We measure the financial reporting quality using qualitive measurement developed by Nijmegen Centre for Economics (NiCE), such as relevance, faithful representation, understandability, comparability, and timeliness. This study uses paired sample test for analysing the data. Based on the test, we found that qualitative characteristics of relevance, understandability and comparability are increased after the adoption, as more information being disclosed. Meanwhile the faithful representation is decreased as the new standard use principle base, which is involve more judgement. Thus, the international financial reporting standard will increase the financial reporting quality, except for representation faithfulness which involves many accounting judgment, so the financial statement user need to analyze its appropriateness, carefully.

Paper Citation

in Harvard Style

Suciati N. (2017). Qualitative Analysis of Financial Reporting Post Adoption of International Financial Reporting Standard - Comparative Study in South East Asia.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 316-320. DOI: 10.5220/0007081503160320

in Bibtex Style

@conference{iciebp17,
author={Nyi Raden Handiani Suciati},
title={Qualitative Analysis of Financial Reporting Post Adoption of International Financial Reporting Standard - Comparative Study in South East Asia},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={316-320},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007081503160320},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Qualitative Analysis of Financial Reporting Post Adoption of International Financial Reporting Standard - Comparative Study in South East Asia
SN - 978-989-758-315-5
AU - Suciati N.
PY - 2017
SP - 316
EP - 320
DO - 10.5220/0007081503160320