Proceedings of the 1st Conference on Islamic Finance and Technology, CIFET, 21 September, Sidoarjo, East Java, Indonesia

Research Article

Does the Financial Performance of Companies Listed in the Jakarta Islamic Index Change, When Implementing IFRS Accounting Standards?

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  • @INPROCEEDINGS{10.4108/eai.21-9-2019.2293949,
        author={Muhammad  Sholahuddin and Adi  Parkawati},
        title={Does the Financial Performance of Companies Listed in the Jakarta Islamic Index Change, When Implementing IFRS Accounting Standards?},
        proceedings={Proceedings of the 1st Conference on Islamic Finance and Technology, CIFET, 21 September, Sidoarjo, East Java, Indonesia},
        publisher={EAI},
        proceedings_a={CIFET},
        year={2020},
        month={5},
        keywords={ifrs; liquidity ratio; solvency ratio; profitability ratio; jii},
        doi={10.4108/eai.21-9-2019.2293949}
    }
    
  • Muhammad Sholahuddin
    Adi Parkawati
    Year: 2020
    Does the Financial Performance of Companies Listed in the Jakarta Islamic Index Change, When Implementing IFRS Accounting Standards?
    CIFET
    EAI
    DOI: 10.4108/eai.21-9-2019.2293949
Muhammad Sholahuddin1,*, Adi Parkawati1
  • 1: Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Surakarta
*Contact email: muhammad.sholahuddin@ums.ac.id

Abstract

The International Financial Reporting Standard (IFRS) is a change in the rules of accounting standards that affects the international accounting information environment. IFRS financial accounting standards in Indonesia apply to companies or institutions that have listed their business entities on the IDX as well as business entities that have public accountability. The purpose of this study is to analyze differences in financial performance as measured by liquidity ratios, solvency, and profitability before and after the company converts to IFRS. This study is a comparative study comparing financial statements using purposive sampling techniques to produce five companies that are continuously listed in the Jakarta Islamic Index for the period 2008 - 2017 with a data analysis method in the form of the Wilcoxon test because the data normality test is not normal. The results of this study indicate that liquidity ratios measured using the current ratio (CR) and solvency ratios measured using DER and DAR have no significant difference between before and after conversion to IFRS.