Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The level of conservatism and earnings management during IFRS adoption

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The level of conservatism and earnings management during IFRS adoption

Accrual earnings management; Conservatism; IFRS; Real earnings management

We analysis to determine the level of conservatism and earnings management in the period of IFRS adoption in Indonesia. We used a quantitative approach and was tested using a different group test, i.e. Mann-Whitney U, ANOVA, and MANOVA.
The object of this research is all manufacturing companies listed in Indonesia Stock Exchange (IDX) for the period of 2012-2017. The number of samples used in this research is 516 firm-years. Earnings management is measured by two approaches, i.e. accrual earnings management and real earnings management, while conservatism is measured by Basu Model. The level of conservatism and earnings management in this study focuses on after the IFRS adoption period. We reveal that IFRS
adoption does not change accounting conservatism in financial statements. In addition, the greater adoption of IFRS is not able to reduce the level of overall earnings management both in accrual earnings management and real earnings management.

Yie Ke Feliana, Jessica Bagus

http://jurnal.unmer.ac.id/index.php/jkdp

Universitas Merdeka Malang

January 2020

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

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Jurnal Keuangan dan Perbankan Universitas Merdeka Malang