Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia

Research Article

Accounting Value Relevance Analysis on IFRS Convergence in Stages at Banking Company Registered in Indonesia Stock Exchange

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  • @INPROCEEDINGS{10.4108/eai.7-10-2021.2316249,
        author={Redho Alma Kuansa and Lindrianasari  Lindrianasari and Liza  Alvia and Ratna  Septiyanti},
        title={Accounting Value Relevance Analysis on IFRS Convergence in Stages at Banking Company Registered in Indonesia Stock Exchange},
        proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2022},
        month={4},
        keywords={book to market ratio changes in earnings relevance of accounting value ifrs return},
        doi={10.4108/eai.7-10-2021.2316249}
    }
    
  • Redho Alma Kuansa
    Lindrianasari Lindrianasari
    Liza Alvia
    Ratna Septiyanti
    Year: 2022
    Accounting Value Relevance Analysis on IFRS Convergence in Stages at Banking Company Registered in Indonesia Stock Exchange
    ICEBE
    EAI
    DOI: 10.4108/eai.7-10-2021.2316249
Redho Alma Kuansa1,*, Lindrianasari Lindrianasari1, Liza Alvia1, Ratna Septiyanti1
  • 1: Lampung University
*Contact email: redho.almakuansa99@gmail.com

Abstract

This study aims to analyze the impact of the IFRS convergence policy in stages on the relevance of accounting values and trends in the banking industry listed on the Indonesia Stock Exchange. Data were taken for empirical analysis which is divided into four stages of research in 2010-2011, 2012-2013, 2015-2016, and 2018-2019. To examine the impact of IFRS convergence on the value relevance of accounting, we use the regression equation with the returned model from Easton Harris (1991). The test results show that the impact of IFRS convergence policy against the value relevance of accounting in the first, two, and three stages of IFRS convergence has no significant effect, while the fourth phase of IFRS convergence policies shows a significant effect on the value relevance of accounting. The results of this study also indicate that there is an increasing trend of the relevance of accounting values at each stage of the IFRS convergence.