Proceedings of the Third Workshop on Multidisciplinary and Its Applications, WMA-3 2019, 11-14 December 2019, Medan, Indonesia

Research Article

Accounting Conservatism in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.11-12-2019.2290836,
        author={Rini  Indriani and Fachruzzaman  Fachruzzaman},
        title={Accounting Conservatism in Indonesia},
        proceedings={Proceedings of the Third Workshop on Multidisciplinary and Its Applications, WMA-3 2019, 11-14 December 2019, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={WMA-3},
        year={2020},
        month={3},
        keywords={conservatism q-score c-score},
        doi={10.4108/eai.11-12-2019.2290836}
    }
    
  • Rini Indriani
    Fachruzzaman Fachruzzaman
    Year: 2020
    Accounting Conservatism in Indonesia
    WMA-3
    EAI
    DOI: 10.4108/eai.11-12-2019.2290836
Rini Indriani1,*, Fachruzzaman Fachruzzaman1
  • 1: Department Of Economy and Business, Universitas Bengkulu, Bengkulu, Indonesia
*Contact email: rini.indriani@gmail.com

Abstract

This study aims to indicate the existence of accounting conservatism in financial reporting, and can provide a portrait application of conservatism in Indonesia, This study uses descriptive research design, which aims to indicate the presence of conservatism in financial reporting of non-financial companies in Indonesia from 2011 to 2015 using the conservatism index Q-Score indicating conservatism in the income statement, and the conservatism proxy of the C-score index to determine the level of conservatism on the balance sheet (financial position statement). The results of this study indicated that there is an association of accounting conservatism in the income statement with conservatism in the balance sheet (financial position report), for generalization it is suggested in subsequent researchers to verify. The results of this study are based on Q-Score Index and C-Score, so it cannot draw conclusions on other proxies.