HOW FINANCIAL PERFORMANCE REPORTING BY IFRS IMPLEMENTATION

ON ACCOUNTING INFORMATION: EVIDENCE FROM INDONESIA

MANUFAKTURE SECTORE

By:
JONKENEDI, S.E, M.B.A

TOHUKU UNIVERSITY
JAPAN

RESEARCH PLAN
PhD
HOW FINANCIAL PERFORMANCE REPORTING BY IFRS IMPLEMENTATION
ON ACCOUNTING INFORMATION: EVIDENCE FROM INDONESIA
MANUFAKTURE SECTORE.

AUTHOR

JONKENEDI, S.E, M.B.A

Management and Science University, Malaysia.

1. INTRODUCTION

One of the aims of financial reporting is to provide financial information for

stakeholders internal such as management, CEO, owners, and employees, also external
such as government, creditor. Basically, the company uses local or regional accounting
principles or standards which accepted by the country or association of regions before the
International Financial Reporting Standards (IFRS) were released or adopted in April
2001 (karrar). Therefore, the International Accounting Standards Board (IASB)
introduced an IFRS as a rule or set of accounting standards for the companies in
preparing the financial statements. At this study aims to prove implantation of IFRS can
be used to validity the financial statement and accurate the reporting. Basically, the
accounting standard’s Indonesia are only half follow from the IFRS to be accounting
standards. It’s the problems for the investors or stakeholders, especially the investors of
stakeholders from abroad.

Therefore, needed the accounting standard that uses in Indonesia must be following
all the international financial reporting standards. This study examines whether the IFRS
could be improving the performance of financial reporting in the manufacture company
that operates in Indonesia. Improve the quality of financial reporting will be impacted to
attractive aboard investors or foreign investors. Currently, the president of Indonesia is
desire to invite or attractive the foreign investors so conduct the invests in Indonesia, if
the foreign investors could be investing in Indonesia, will impact on the economic grow
up.

The quality of accounting reporting is one of the most crucial elements that could
affect the investors when decision-making to invests (ahmed kouki). Basically for
accountants could not be sure that their estimate based on the rule of accounting such as
IFRS and PSAK (the standard of Indonesia accounting).